RENTAL PROPERTIES ARE AN "IDEAL" INVESTMENT
Rental homes are the IDEAL investment because they offer a higher rate of return than other investments without the volatility of the stock market. With certificates of deposit and bonds at less than 2%, people need an alternative investment that they understand and with a reasonable amount of control. In this case, IDEAL is an acronym identifying the advantages of rental properties. I ncome from the monthly rent contributes to paying the expenses and a return on the investment. D epreciation is a non-cash deduction that shelters income for some investors. E quity buildup occurs with amortized mortgages because each payment is composed of interest owed and principal reduction to retire the loan by the end of the term. A ppreciation is achieved as the value of the property goes up. L everage can increase the return on investment by using borrowed funds to control a larger asset. These individual benefits working together make rental real estate a good investment for today’