Pingdingshan Are you thinking about buying an investment property in Los Angeles? If so, you’ve come to the right place to learn about all of the perks of buying an investment property. To make sure we’re all on the same page, income properties were developed or are bought to earn income, and while there are many different advantages to doing so, you also need to learn what the risk factors are. To get started, here are the advantages of buying an investment property:

http://sjfiremuseum.org/store/ You are the boss.

It’s nice to be your own boss. You’ll get to make the decisions when it comes to your income property, like which property you want to invest in, how much you will end up charging for rent and how you manage or maintain it.

Potential appreciations of a highly leveraged asset.

Investment properties are said to be highly leveraged because you’ll purchase a property that uses significantly more debt than equity. Often times, you invest a small amount of your own money and then borrow the rest from a lender. So, this is where you are able to turn the property into an investment. For example, if you buy a property that costs $100,000 with $10,000 of your own money and borrow the rest, at year 10, you will have gained over $60,000 in appreciation. Although all property and numbers are different, this example may be able to help you learn the potential you have when buying an investment property.

Rental income is just money in your pocket.

Although you’ll have bills to pay on your rental, the money you get from the renters will be able to pay off your initial investment sooner than if you were living in it yourself. Not only that, but on a monthly basis, you will be able to put some extra cash in your pocket.

Don’t go anywhere just yet, stay tuned for more investment property benefits in our next blog!