For many people, one of their biggest goals in life is to have a steady, reliable income, and a good one at that. Many of us want finances to be the least of our worries, so that we can focus on more important things, such as investing in experiences, friends, family, vacations, or maybe just paying off that student loan or mortgage.
Regardless of why you want more money, it can be hard to obtain it beyond working hours that wear you down, or a job that isn’t enjoyable. Fortunately, there are different options available to everyone, but it is absolutely vital that you understand these options and choose the one that is best for you. One of the options available is cash flow properties, but it is important to understand the pros and cons of this money making business first.
One of the pros of owning property and renting it out is simple: you make money. In fact, depending on the property and the rent prices in the area, you can make a lot of money. You also can gain prestige as the owner of multiple properties, and can turn that money around and invest it into more properties. The advantages of this are obvious: more money, more property, and more free time. If you decide to make renting your sole occupation, it can be very easy to schedule things to accommodate you and your lifestyle. This would certainly be a remarkable break from the nine to five office hours, or insane late shifts. Also, after a point, you might be able to hire managers for your properties, and simply sit back and enjoy the relaxation that you have earned. Renting is also a good market, and you can rent with relatively little confusion.
However, it is completely crucial that the cons are understood as well. First, this is not a business to get into unless you are willing to work very hard to achieve that wealth. Investing in houses or buildings, and then modifying them, promoting them, making sure that you have the right tenants, and keeping up with repairs and demands can be very overwhelming. Wealth is not something that is achieved through a small amount of work; it takes time and effort that you must be willing to invest.
You also must understand that while you ultimately might be able to set your own hours in the future, sometimes you can’t during the first few years. In order to accommodate tenants, you might be up at 3am to deal with a leak or another issue that must be addressed immediately. On the same note, you might work 16 hour days at first, to make sure the property is presentable and market ready. You also will have to invest time in finances and money management. Many people try to make it sound like a rental property and then the subsequent money are easy to obtain, but this is not accurate. It takes hard work, often times work that stretches over years, before you can have that ideal lifestyle.
So, before you decide to invest your time and money into this business, it is important to understand that you are investing time and effort, as well as the finances and emotions. If you are not prepared to work hard, this is not the field for you. However, if you are willing to do so, and take on the uncertainty that can come with this profession, perhaps it is time to further look into it.