EPISODE 311: Investing in Rental Properties
John and Robert interviewed Dustin Heiner for their 311th episode of the Mail-Right Show. Dustin Heiner is the Founder and Rental Property Expert at MasterPassiveIncome.com. After becoming self-employed at the age of 37 through real estate rental properties, he is now on a mission to educate and encourage everyone about the advantages of passive income from real estate investing. Additionally, Dustin assists his students in establishing profitable real estate investing enterprises throughout the country. He published his first book, “How to Quit Your Job with Rental Properties,” in 2015, which became an instant bestseller. During our talk, Dustin shares his insights on the industry and provides concrete advantages towards investing in real estate today!
Real Estate Investment
Real Estate Investing is a proven way to successfully build wealth and the best part is you don’t have to be a millionaire to get started. The first step with real estate investing is starting with your own home. You can create an additional source of income by renting out a room or basement, or by converting your garage into another residential unit.
If you’re not into sharing your home then the next best option is by acquiring an investment property. Similar to renting out your home you have several options you can consider when choosing a property to invest in. You can go for modest single-family homes or multi-unit apartments, whichever best matches your target investment. Check which property type best matches your investment goals and start from there.
Rental Property Advantages
- Passive Income – Perhaps the most significant advantage of rental property ownership is that it generates passive income. This means that the revenue is recurring and requires little work to sustain. Instead of spending your days working for someone else, earn passive income with the profits from your property.
- Asset appreciation – Income properties have the potential to appreciate over time, allowing investors to sell at a profit. If the market is not good for selling you can rent out your house till the market conditions improve rather than selling it for a loss. The ability to sell your house at a profit is one of the primary benefits of renting out your home
- You get protection against inflation – Real estate, unlike most other types of investments, can provide a buffer against inflation. That’s because the cash flow you get from the property diminishes as prices rise (and the value of the dollar increases). Rents naturally climb in tandem with housing prices in your market, so you’re effectively keeping up with inflation
- You gain the opportunity to accumulate future equity – You gain equity as you pay down your mortgage payment or the value of your home improves, which you can cash in later. This could include selling the house for a massive cash infusion, tapping the equity via a cash-out refinance or a home equity line of credit, or even leveraging the equity to acquire another property and diversify your portfolio.