7 Benefits of Denver Rental Properties
The thought of having rental properties crosses the mind of many, but few people actually act on that thought. Some simply assume they can’t afford to get started while others think they won’t have the time. Of course, there are also potential investors who just do not know what to do first. If you are thinking about entering in the Denver rental properties market, here are some points that should inspire you to act on those passing thoughts.
- Generate Money – Obviously, you are not going to deal with Denver rental properties with the goal of losing money. The whole idea is to make more money than the property costs you every month.
- Ditch the Mortgage Earlier – When you are bringing in more money than you are paying out, you are able to apply a little extra to your mortgage. When you pay it off early, you will have more money in your pocket every month because you won’t have a payment due.
- Free Mortgage – When you think about it, you won’t even be paying your mortgage. Paying for a property with money earned by someone else is not a bad deal.
- Increase Value – Increasing value not only means more money for you, if you sell in the future, it also allows you to charge more for rent, as well. Put a small portion of the rent away in a separate account that is strictly for home improvements. So, just as you are paying off the mortgage early with your tenant’s money, you can make improvements with their money, as well.
- Embrace Market Inflation – If you are an average homebuyer then market inflation may not exactly give you a warm fuzzy feeling. However, when you own Denver rental properties, inflation is something you can be thrilled about. You can charge more for rent and there are generally more renters when listing prices go up. Plus, once again, if you sell then the property will be worth more.
- Tax Perks – “Tax” always feels like such a negative word, unless you have rentals. Owning these properties awards you with some impressive tax benefits.
- Rental Increases – The more you put into your property in terms of improvements, the more you can charge. Apartment properties raise their rates frequently, so why shouldn’t you?
Buying your first Denver rental property can feel a little intimidating. However, once you get the first one done, the rest will be easier. Having multiple Denver rental properties can mean more money for you if you execute your strategy correctly.