What are the Income Opportunities for Buy to Rent Investors?
Did you buy the property at a discount relative to comparable properties in the area? If you did then your asset appreciated upon closing. Your seller may have been motivated by financial difficulties or an impending relocation, but whatever the reason, this created an investment opportunity that provided appreciation on purchase.
Growth of equity over time provides appreciation that should at least grow at the cost of inflation. When analyzing a property for purchase, keep in mind the strength and diversity of the local business climate. This can positively or negatively impact the value of your investment as well as generate higher or lower rental demand.
As an investor, you also have the option to leverage equity from your existing portfolio. Your equity is an asset that can be borrowed against and can provide a source of capital for future investments. While not an income generator, the tax benefits of real estate ownership can help shelter income and save you money that can also be used to grow your portfolio.
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