Welcome to our monthly topic about how to build wealth through real estate. In this discussion we are going to talk about how to look at your real estate in a new way, as a wealth building tool.
In addition to being your home, real estate typically appreciates when other types of investments are volatile so as you're purchasing the next home, you will own you may be thinking not only about how much you will enjoy living in it but how it might also be evaluated as a future rental property.
So, what are the qualities of a good investment. On the most basic level, a rental property provides positive cash flow. This means that you're able to find reliable tenants and rent the property for more than the monthly mortgage payment. You also want your property to have durable economical finishes.
For example, vinyl plank flooring stands up well to foot traffic and pets it also can be more easily changed if damaged than for example hardwood flooring. You may also want to select simpler light fixtures and remove items from the property that often break such as storm doors, ceiling fans, incinerators which are the grinders that you have in the kitchen sink.
And you might also decide to use the same neutral paint for wall ceilings and trim to make repainting between tenants as stress free as possible. So unless you're buying your forever home, the last home that you intend to live in, and you're trying to make that home very special, what you might do is buy a series of homes and every time you buy a new home, you keep your departing residence as a rental.
As you're doing that, you may make some sacrifices along the way in terms of the kinds of flooring and amenities that you put into the home because you want it to be more durable for a rental property.
Therefore, these are some of the things to consider. You want your property to be in a great location you want to be able to rent it easily and you want your rents to come in and pay you more than your mortgage payment, so if you need more information about what makes a good rental property, we can certainly help you to evaluate that. Please just reach out to discuss how to make your home transition into a great rental property.