Rental real estate is a powerful thing and can set you up for financial success in the future. There are many benefits to rental real estate and Sentry Residential's "Investor in Residence", USMC Major Buddy Rushing covers the top four reasons why people choose to invest this way.
What are the four powers of rental real estate?
Cash flow - How do you receive cash flow with rental real estate? Buy a rental property and rent it out to someone. The rent your tenant will pay you will be used to pay the mortgage payment and other expenses on your home. If you charge the tenant more than the monthly mortgage payment you will be able to pocket the extra income, or cash flow.
Principal pay-down - When rent is being paid to you and you are using that money to pay your mortgage loan, a portion of that payment is being used to pay down the principal.
Appreciation - Generally, overtime real estate in America appreciates which means housing prices go up. If you purchase a house and keep it for a few years there's a good chance it will appreciate so when you go to sell it it will be worth more.
Tax Savings - Just for owning real estate you get to save on taxes.