Investing for Capital Gains
Real estate is still one of the best investments you can make. And owning a rental property is a great way to hold on to your investment while it increases in value. Tenants will pay rent and cover the amount of your mortgage plus taxes. All you need to do is cover a down payment and manage the property. The important thing here is to create a net positive cash flow where the amount of income you bring in is greater than the amount you pay out. You must also be confident that you can keep the property rented for a long time without long periods of vacancy. Imagine collecting $1,300 per month for rent with a $1,000 mortgage and tax payment. Then going six months or more without tenants! Pricing the property correctly and finding out about the rental market before you invest can keep you from taking steep losses. From the long term perspective, if you can maintain the property for many years, you will be able to sell the property at a premium and take a large capital gain.
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