Rental properties are appreciating assets that help to create long term wealth. Rental properties are for the patient investor. Time equals money. Real Estate Money Makers:
Cash Flow
CASH is King! Cash flow provides passive income which is one of the most alluring aspects of rental properties
Instant Equity
Buying an undervalued property
Leverage
Leverage allows returns to expand by using OPM (Other peoples money; Banks for mortgages, etc.)
Appreciation
Improving the physical condition of a property by buying in distressed condition & renovating to force appreciation
Refinancing based on your forces appreciation
Depreciation
Depreciation distributes the deduction (repairs etc.) across the useful life of the property
Principle Paydown
Tenants are your greatest partners in rental properties. They are the ones that pay down your mortgage !!!