Owning rental properties can be a rewarding investment strategy that generates consistent passive income. One of the major benefits of rental properties is the monthly cash flow that comes from tenants paying rent. Over time, the property may appreciate in value, allowing for a potential sale profit as well.
Additionally, rental properties offer tax benefits, such as deductions for mortgage interest, property taxes, and maintenance costs. Property owners also build equity in their properties as tenants make rent payments, which adds long-term financial security. However, it’s important to carefully manage the property and screen tenants to avoid potential challenges.