To invest in one or several rental properties is one way to build up equities in your properties. We have a large portfolio of rental properties that spread all over DFW. And we seldom had one property that stays vacant for too long. The market for rental properties in DFW is blooming with a lot of demands from tenants.
The concept of making profits in rental property is you buy an investment home or convert your primary home to rental home:
Then you will have tenant paying rents to you. You use that rent money to pay for your mortgage, property taxes and insurance and repairs. Time goes by year after year, the principal of your mortgage will go down and hopefully the value of your property will go up. That’s win-win situation. In the ideal situation your equities in the house will go up significantly, principal of mortgage going down with the big help from values of the property to go up.
We have some landlord clients that own several rental properties with us since more than 10 years ago. One example is we purchased a brand new property for them in Frisco 2006, 3500 sqft, 5 beds for $250k. We leased it $2400/month. 11 years later 2017 the value of property is almost $500k and principal of mortgage loan is paid off about 1/3. That landlord has about $350k in equities and she never spent a dime of her own money to pay for mortgage, property taxes and insurance. Tenant paid everything for her with his rent money. This is only one scenario of one landlord/investor. Everyone has different time and location to invest in your rental properties and the results will come out differently.
One common misunderstanding that people thinking is why a tenant who could afford $2500 or $3000 a month to go for renting a house instead of buying a house and own it.
Well, everyone has different situation or thinking. Our tenants are included many doctors, lawyers, managers of big companies and professionals. They transferred to DFW areas from out of state. And they have employment here but after few years they may move following better jobs and better pays in other States. It’s better for them to rent a home.
There are demands of all kinds of properties. We manage properties from renting out for $1000s a month to $3000s month. Minimum length of stay is one year. Some tenants stay 5 years or more. You can called yourself established when you own one primary home. When you own one or more rental properties you are real estate investor. It sounds rich. Just keep in mind the basic of understanding in investments: in any kind of investments to gain, there will be some risks to go with it.
Our Property Management company offer professional services and very competitive management monthly fees. We are in this profession for more than 20 years.
Happy investing in real estate everyone !!!
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