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in #real7 years ago (edited)

A boring old rental property. I have a few of them. It may not be a sexy, fast paced speculative investment like bitcoin, Tesla, or commodities, but it brings in the cash. I can count on my rentals to bring me cash every month, year after year.

The a Achilles Heel of many of the sexy investments is the growth is over when you cash in AND you need to invest your winnings in the next sexy picks to keep the party going. We all hear the stories of the early bitcoin investors that paid pennies or mined when it was easy...but realize THAT IS NOT YOU. Maybe you'll stumble across the next big winner...maybe. Until then you better speculate with a small portion of your investment dollars and put the bulk in tried and true winners.

I personally like rental real estate. There are many advantages including:

Steady income - AKA cash flow, when done right the checks roll in every month
Equity - The tenant pays the mortgage and builds equity in the property for you.
Tax benefits - Tax laws are structured typically with less cost for real estate profits compared to other investments
Inflation hedge - When purchased and managed correctly your income will typically grow yearly as rents increase.
You CAN start small - you can get into investments for just a few thousand dollars if you're limited on capital

I've heard the rental horror stories of bad tenants that build a meth lab and burn down the house. Typically that tenant was in the home because of improper screening during the application process. You can insure against these unusual occurrences and with a proper screening process you may never experience anything like it.

Looking for feedback from any real estate investors out there!!

Here's a pic of one of my rentals:
IMG_4073.jpeg
IMG_4073.jpeg

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Looking forward to the rest of your blog. I've been in and out of the business & never thought about the benefit of your rental income functioning as a hedge against inflation. Great insight!

Hi Thorson, in which country/city are you buying? And what is the rental yield?

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Could you provide some additional insight into your corner of the real estate world? Seems like it is a safe bet to lock in cryptocurrency gains.

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