Real estate investments provide relatively quick cash flow, less than 2 months after the property is rented, compared to other types of investments or business.
Tax Benefits via deductions
Real estate investments profits are taxed at a lower rate than regular business income. All expenses, including depreciation, for the investment can be deducted resulting in a lower tax bill.
Principle Pay Down
While you are getting the benefits, tenants are paying down the principal increasing your net worth.
Appreciation
Real estate appreciates at or better rate compared to inflation over the long run. Real Estate returns are comparable to stock market returns before adding the tax advantages.
Leverage
Real Estate investments allow you to leverage other people’s money, e.g. bank for the mortgage and you are only paying a fraction for the down payment. Tenants pay that mortgage via rent and eventually with little of your own money, you have a big asset.
