There’s been heavy talk about building and generating wealth within our communities. Many want to start, but may lack the direction or don’t know exactly where to begin. One of the easiest ways is through real estate. Real estate helps to not only allow you to generate extra income, but it can also grow the seed into generational wealth.
Some may look at an old and abandon home or duplex and think, “Ugh, who would but that?”, yet a smart investor will look at like this, “Okay, so I can purchase this property for as low as $90,000 if not lower, fix it up and then then flip and sell back into he market; or better yet, rent it out”.
Some of the benefits of investment properties include, but are not limited to:
- Your entire mortgage is getting paid by someone else. Say you buy a house then get married and now you and your partner want to buy a home together. Instead of letting the house go completely, why not rent it out.
- Guaranteed extra monthly income. Not only are you renting your old house out, but you may also be getting a little extra change as well. How much determines on the price of the rent.
- Building Equity in that property. This means money in the bank that you can take out at anytime.
- Paid off Property in Retirement. Imagine when your kids don’t have to worry about trying to find a place of their own? If you choose, they can move into the property, but you can still charge them rent (responsibility) which can take over the property taxes.
If you decide to go the Section 8 route, some of the benefits to renting out to tenants of Section 8 include:
- Being able to help our people (families of color) in need. Just giving back to the community can over all make you feel great.
- Low income families will have the opportunity to live in nicer neighborhoods. Which also comes with much better and higher quality schools.
- Guaranteed monthly pay from the state. Who doesn’t love income that you don’t have to work hard for?!?
- You can increase the rent every year (up to 10%). inflation, as things go up, property goes up too.