It is always great to have many streams of income, some active and some passive. After all, accumulating assets and avoiding liabilities is the secret to getting rich.
There are many benefits to buying rental property as an investment. When you consider the three types of income – earned, capital gains and passive; we find that passive income ranks higher than earned income.
Rental property is not co-related to the stock market. One can achieve a fair level of diversification with stock like returns. Of course, Bonds allow you to diversify; with much lower returns.
Buy With Leverage
Rental property investments are great because you can borrow money and leverage it to buy property. The down payment is a fraction of the purchase price providing you leverage.
When you buy a rental property as an investment; YOU are directly responsible for the investment returns. Rental property investment returns depends on your skills to find a great deal, negotiate a deal.