Looking for a part-time job that can earn you income without taking up too much time? Consider investing in a rental property and hiring yourself as a landlord. You’ll manage the property by finding tenants, making repairs or calling in a professional when you need help. With the right tenants and strategy on your part, rental properties can provide a somewhat passive income for you. It is crucial that you choose your property wisely though, or you may end up with more headache than the income compensates you for.
Buying a rental home can help balance the other investments in your portfolio that are tied to the financial markets like stocks and bonds. If you select a relatively new home with few maintenance chores, the job of being a landlord can be very part time.
You don’t have to have a lot of cash on hand to buy an investment property. Purchase mortgages are available, although they typically require larger down payments than loans used to purchase owner-occupied properties.
Investors reap many of the same rewards as owner-occupied homeowners. Rental homes build equity when you pay down the mortgage and when home values increase.
You may also be able to depreciate the property and deduct your expenses to offset your rental income, but the tax rules for real estate investors are pretty complex. You’ll need to discuss your individual situation with a tax adviser to find out how the rules apply in your case.
