The 5 Profit Centers of Rental Homes
When talking about rental homes, most people focus on the two most common financial measures: Cash flow and appreciation.
But did you know there are actually FIVE profit centers in residential rental properties? And they all can help investors build generational wealth for themselves and their families:
APPRECIATION: In California, we are all aware of the power of time, value and real estate. Prices may ebb and flow in the short term, but long term, keep looking upward.
CASH FLOW: The monthly income you receive in rent payments is most tactile and frequent. Pay the property expenses, including your mortgage!
TAX ADVANTAGES: When you have a rental property, you have your own business. And the tax benefits that go along with it. Virtually every expense of the property, plus DEPRECIATION, which is the magic ingredient come tax time (check with your tax professional for specific advice).
PRINCIPAL PAYDOWN: Those rent payments applied to your mortgage payment each month systematically extinguish the debt on your asset, building your equity along the way.
HEDGE AGAINST INFLATION: A recent addition to the Profit Centers, as inflation has ballooned, so has the devalutation of the dollar. There’s no better place to be in a high-inflation environment than real estate, which rides the tide and keeps your portfolio from going under.
At Dream Big Property Management, we’re not just a garden-variety management company.
We Transform Rental Homes into Life-Changing Wealth. We have our eyes on ALL FIVE profit centers in rental properties, and our goal is to help you build your rental portfolio.
If you are a rental home investor in the Inland Empire and you want to provide clean, safe, well-maintained homes, give us a call today at 951-778-9700 or email info@dreambigpm.com to discuss how we can work together to help you acquire, maintain, and generate increasing income in your real estate holdings.
Dream Big Property Management
CA DRE Lic 01226670
Brian Bean, Broker/Owner Rental Home Advocate
191 E Alessandro Blvd Ste 9C, Riverside, CA 92508
951-778-9700
info@dreambigpm.com www.dreambigpm.com
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