Like with any investment, there are advavtages and disadvantages to owning income producing properties. Let's first examine the disadvantages:
-Real Estate is not as liquid as some investments. It usually takes more effort and time to convert this asset to cash than stocks or bonds.
- Real Estate is not portable. If you move across the country it can't be folded up and taken with you like a Certificate of Deposit.
- Income Properties require management and upkeep. You will have to management the property or hire someone to manage it for you.
Now let's examine some of the positives:
+ You can control an asset worth 5 - 10 times your cash investment.
+ You enjoy appreciation on the entire value of your property, not just on your cash investment.
+Rental properties can provide cash to you each month.
+Owning income producing properties has some tax advantages that may not be available for other types of investments.
+When you invest in income producing properties you use Other Peoples Momey (OPM) in the form of a Mortgage, Deed of Trust, Contract of Sale or some other financing instrument.
+Rent from your tenants makes your monthly payments
+Depreciation can be charged against the property to shelter some of its income from taxes.
+Income producing Real Estate is a stable investment not subject to the volatility of the stock market.
+ You can realize a 20 - 30% annual return on your investment.
After comparing the advantages against the disadvantages, your next question should probably be:
HOW DO I GET STARTED?
In the Phoenix area call me to schedule a free, confidential, no-obligation consultation. Outside the Phoenix area, call for a referral in your area.
602-264-8400 fax 602-264-8408
Phoenix, AZ 85018
602-264-8400