Rent out Residential Real Estate for Cash Flow
Have you ever heard someone say, “I wish I had invested in U.S. real estate years ago… just look at property values now”? We have. That’s because over time, U.S. real estate always appreciates. Prices rise as the population continues to increase… and people will always need somewhere to live. Years from now people will still be saying that same thing—but you won’t be one of them!
This Is the Opportunity of a Lifetime
Real estate, like many other investments, is cyclical in nature… but what’s not cyclical is the fact that the U.S. population continues to increase, and demand for housing will continue to climb. As a result, real estate investing is one of the most profitable and stable investments you’ll find anywhere.
Real estate prices rose dramatically this past decade, especially in major U.S. metropolitan areas. Many of the dramatic increases came to a halt in early 2006 as real estate prices fell. It’s taken nearly five years, but prices have finally bottomed out. Consequently, you can purchase U.S. real estate before prices begin to rise again… for mere pennies on the dollar… a once-in-a-lifetime opportunity!
Cash Flow from Rental Real Estate
Purchasing a property and then collecting rental income from tenants is a profitable, time-tested real estate strategy. Collecting rental income, combined with long-term appreciation, allows you to make money three ways:
- Tenants pay you rent—giving you regular monthly cash flow.
- The property appreciates over time, increasing its value.
- The U.S. government allows you to “depreciate” your rental property when paying taxes. This depreciation—along with any associated rental expenses—result in a very small tax burden to you.
A Cash Flow Example
Although other investment opportunities exist, none combine both safety and earning potential like real estate. For instance, if you were to put $50,000 in a bank, your rate of return would be only 2% annually. But consider this average example of the annual cash flow from a rental property:
| Purchase price | $48,000 |
| Rehab/fix-up costs | $2,000 |
| Total Cost | $50,000 |
| Rent ($800 monthly) | $9,600 |
| Vacancy (10%) | $960 |
| Total revenue | $8,640 |
| Insurance | $466 |
| Property management (10%) | $960 |
| Maintenance | $600 |
| Taxes | $672.46 |
| Net Operating Income (NOI) | $5,941.54 |
ROI |
11.9% |
This house will produce income of nearly 12% every year… and its value will continue to appreciate! Now you can see why rental real estate is the perfect investment for you to create long-term cash flow.
Let Our Team Do the Work for You
Leivaire has hand selected the best real estate professionals in the U.S. to assist you in selecting a rental property that’s right for you. We have talented real estate agents to help you find the perfect investment location… property managers to take care of finding tenants and renting the property… and every other professional you’ll need to successfully invest in U.S. real estate. Come learn how you can achieve financial freedom for yourself and your family today!
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