Thinking of Purchasing a Second Rental Property?
5 Benefits of Increasing Your Rental Portfolio
As a real estate investor and landlord, buying a second rental property can be a great way to expand your business and reach your financial goals. By buying a second investment property, you have the ability to generate income and create gains through appreciation and tax benefits. At Oak City Properties, we compiled a list of the top five reasons to increase your rental portfolio and take advantage of the current real estate market. Read on to learn more about the benefits of increasing your rental portfolio and embrace the idea of purchasing that second rental property.
With residents flocking to Raleigh, NC, the real estate market is soaring high with a surplus of individuals willing to pay top dollar to rent a property in the area. By increasing your rental portfolio to encompass another property, you will gain appreciation and profitability. For more information on equity growth and appreciation with rental properties, take a look at “Property Growth and Appreciation: Benefits of owning a rental property.”
#2: Stock Market Uncertainty
The stock market is never a “sure” thing. With the uncertainty brought on by COVID 19 and the fluctuation in the stock market over the past few months, investing your hard-earned cash in stocks may not be the best option. However, the Raleigh real estate market is thriving and is a relatively safe long term investment. For more information on the numbers behind the Raleigh real estate market, take a look at “Is it safe to purchase another rental property? A look at Raleigh’s housing market.”
#3: Tax Shelter
More property equals more write-offs and the potential to offset gains. When purchasing a second rental property, you have the ability to deduct items such as interest, insurance, and other expenses against the property’s income. Essentially, your rental property becomes a tax shelter where you can accrue numerous benefits. For more information, take a look at “Tax Deductions When Owning Two Rental Properties.”
#4: Expense Coverage
Whether you are a seasoned rental property owner or just getting into the business, leveraging one property to cover the expenses on another is a great way to cover unforeseen costs as a property owner. Maintenance, repairs, and vacancy issues are just some of the expenses when renting a home. Being able to leverage one property’s income to cover another is key to building a profitable rental portfolio. For more information, take a look at “Know Your Leverage Options: A guide to owning multiple rental properties.”
#5: Ease of Access
At Oak City Properties, we have been taking care of rental properties for years! Our full-service property management company will help you find and buy new rental properties to grow and diversify your portfolio. We will also market the property, locate prospective tenants, and show the home to qualified applicants. Once a tenant is placed in your rental property, we will: collect rent payments, assess and collect late payment fees, provide 24/7 maintenance, help with accounting/tax services, and deal with any court appearances in the event of an eviction.
Want to read more about property management services? Here are a few blogs that may interest you:
What to Expect from a Property Management Company?
7 Benefits of Using a Property Management Service
Do You Need A Property Management Company?
How a Property Management Company Can Help with a Vacant Rental