It’s no secret we’re living in a strange time, and for many, that means a significant impact on our pocketbooks. If you’re seeking ideas for additional income, you might want to consider adding an investment property to your list. And, don’t worry, you don’t have to be an HGTV house-flipping guru to invest in real estate. If you’re deciding whether or not to invest, I have some key takeaways that might help you make your decision.

First thing’s first

As an owner of an investment property, you’re the boss. You get to make the final decision on which property to invest in and how you’ll manage the property for the duration of the lease agreement. But, with great power comes great responsibility. One of those responsibilities is to ensure your rental property is not only livable, but well maintained. Proper upkeep will keep tenants happy and the rent money flowing. A property with constant maintenance issues can eat into your income.

Property acquired, tenants inspired 

Owning a property is a privilege, and most of us have to take out a mortgage to pay for property (and that’s OK!). The rent money you receive from a tenant should go toward paying your loan principal. Sooner than later, you will get this money back. Once your loan is paid off, the more wealth you can create for yourself. 

Money in the bag

Some of the benefits of investing in real estate include passive income, stable cash flow and tax advantages. As a rental property owner, you’re entitled to several tax deductions, including the interest on your mortgage, interest on your credit cards used for property improvements, maintenance repairs and legal or professional fees. Any cash flow from tenants that is left over after paying your expenses will be money in your pocket. Just be sure to take other costs into account like HOA fees and taxes, which can interfere with your profit.

If you’re considering investing in property in Sarasota and need some additional guidance, don’t hesitate to give me a call at 941-225-1500 or email me at AmyChapman@michaelsaunders.com. I’ll share my knowledge and work as a trusted partner offering advice, sharing local listings and providing answers to any questions you may have as you begin the homebuying and selling process.