Should You Buy a Home as a Rental Investment?

Are you thinking of buying a piece of property in Scottsdale and using it as a rental investment? It seems like a great idea, and you know that the rental market is typically quite strong in the area. However, it really is a good idea to look at the pros and the cons before you make your choice. This way, you can make an informed decision on what you should do.

The Benefits of a Rental Investment

Of course, one of the biggest and best benefits of having a rental investment is the fact that you can make money from it. That’s the goal of any investment, naturally. Once you account for the mortgage payment, along with maintenance and other incidentals, the rest of the money is profit right in your pocket. With a single rental property, it might not be enough to quit a day job, but it does provide you with more income. In addition, once you pay off the mortgage entirely, the amount of income you are receiving increases substantially.

Consider your taxes as well. When you own rental properties, you can receive tax deductions in many cases. You can write off the interest on the property as well as the interest on credit cards used to purchase things for the property. Of course, with all situations being slightly different, you will want to consult your tax advisors to learn what you can and cannot write off.

There also happens to be a potential for the property to rise in value. This typically happens over time, particularly in areas as popular as Scottsdale. Your property could actually increase in value to a level high above what you paid for it. If you choose to sell down the line, this could be a nice chunk of change in the wallet.

The Cons of a Rental Investment

Of course, even though you will experience all of these benefits when you have a rental investment, you will also need to think about some of the drawbacks. The main drawbacks include actually maintaining the place, dealing with tenants, and collecting rent. While these might seem like simple things, they can take up a substantial chunk of your time each month. You might not have that additional time to spare, especially if you are working fulltime. Do not let the cons discourage you though. There is an easier way than trying to manage the property on your own.

Get Help from a Scottsdale Property Manager

Fortunately, you can always hire a Scottsdale property management company to help you in these areas. They can make sure that your property is in good shape and that you have quality tenants that pay the rent on time each month. Of course, you do need to make sure that you put in the time and research to find a quality property management company in Scottsdale that has a good reputation and plenty of experience in the field.

As you can see, the benefits outweigh the cons. In fact, when you offset the cons with your Scottsdale property manager, you will find that there are only benefits! If you are in a good financial position, now could be a fantastic time to invest in a rental property. The rental market is strong, and people are always looking for quality homes and condominiums to rent. When you have a Scottsdale property manager working for you, they can even help you find and then screen tenants so you can be sure you are getting the best people who will take care of your property.