Advantages and Disadvantages of Real Estate Investing

If you are just beginning real estate investing and would like to know exactly what the pros and cons of buying and renting properties are look no further then right here.



So, here we go. Below is a brief summary of what the pros and cons of becoming a landlord are and what you can do to make it better.



The major advantages of becoming a landlord are;



1. You Collect Rent Money



Of course the biggest advantage of real estate investing is that you get rent money. If your house is rented out you will receive a check each and every month. Consistent checks mean consistent profits and passive income.



2. Appreciation



Houses are valuable assets. As land becomes more scarce houses will appreciate over time and landowners should benefit from this. In fact historically landowners have been the richest people in the world in part because the land keeps appreciating.



There are also some disadvantages of real estate investing.



1. You Might Have Problems With Tenets Not Paying



You pay the mortgage with the tenets rent money. That is a great system, but what do you do when the renter stops paying you? It is something to be aware of. You may get a bad renter and it may take you a while to replace them.



2. Damaging the Property



Tenets might also damage the property. If they do you'll have to repair it. A lot of tenets really don't care about their rentals and any damages that it might get as much as the person who actually owns the house.



So, what can you do about these 2 problems? Well the most effective thing is to do a rent to own contract. This way the tents feel like they own the house, they will most likely keep it in good condition and pay on time every month.



Real Estate investing really can be a great way to build your wealth and get some extra income. It should be something to take into consideration when planning your financial future.