5 Ways Beaverton Oregon Rental Properties Make Money
Are you planning on investing in Beaverton Oregon Rental Properties? If so, you come to the right place.
Rental properties continue to be an excellent hedge against inflation, especially in 2022 as the stock market has had its ups and downs.
Most investors are eager to preserve the wealth that they have left, and investment properties are attracting renewed interest especially since there are multiple ways that they make money.
#1 – Cashflow
Let’s face it, cash is king, and with rental properties, cash flow is the number one way that a rental property will make money for the landlord.
The great thing about the cash flow from rental properties is that it’s dependable cash flow that comes in month to month, regardless of the state of the economy, jobs market, or what’s happening in the world.
The main reason why rental properties continue to outperform other Investments is because everybody needs a place to live, so as long as a landlord does their best to provide a rental property that’s clean, safe and modernized, they can continue to expect reliable cash flow for years to come.
#2 – Appreciation
Another common way that rental properties make money is appreciation. This happens for a variety of reasons including when the landlord invests money in improving the property, and when improvements are made in the general area where the property is located as well.
There’s no denying that we’ve seen real estate appreciate exponentially in Portland in recent years. This is expected to continue even though demand for real estate isn’t what last year.
Landlords who are eager to start investing in real estate now should consider investing in Portland rental properties immediately because more people than ever before continue to relocate to Portland and the surrounding areas to escape high tax states like California, and to be in liberal progressive communities.
#3 – Property Improvements
Although property appreciation has seemingly happened like magic in recent years, one the most common ways that properties appreciate is when the owner invests money in either improving curb appeal or making general improvements within the property itself.
There’s nothing better than property appreciation because if an owner spends $30,000 improving a property that’s only valued at $100,000, if they spend $30,000 when the work is done that property will be worth $150,000.
Having $20,000 added to the value of the rental property is called forced appreciation, but it’s an excellent motivator to invest in more rental properties because it’s another stream of passive cash flow that comes in consistently monthly.
#4 – Location, Location, Location
Yes, appreciation rocks for landlords but, another excellent way that rental properties make money is when the landlord purchases a rental property in a great location.
Anyone who has studied real estate over the years knows that properties tend to go up in value especially when they’re built-in locations that have a Starbucks, McDonald’s, or other big name brand franchise.
Landlords who are planning on investing in new rental properties in Portland should take into careful consideration what’s being built in the neighborhood where the property is located because that will give them an idea of what to expect from the future ROI of the property.
#5 – Tax Write Off’s
Last of all, but most important, another classic way that rental properties make money is from tax write-offs.
When filed correctly, a landlord can write off much of their expenses over the course of one year.
Yes, $20,000 to $30,000 dollars might not seem like a lot of money to some landlords or investors, but the reality is that if you own more than one rental property, that cash flow can add up significantly and be a huge tax saving at the end of the year.
The key to success with making the tax savings payoff is to hire a great accountant who understands rental properties and is on top of all the latest deductions so that you can have peace of mind in knowing that you’re qualifying for the most deductions that you are allowed.
It’s also important to remember that as a landlord, you build a cash flow and make money from your rental property once you pay the mortgage on that property off.
Even though it may take you 15, 20 or 30 years to pay that note off, the reality is that once the property is paid off, that money is yours free and clear and you’ll have the ability to will that property to your heirs or sell the property at the next peak of the market and utilize that cash flow for your retirement.
Contact Rent Portland Homes – Professionals
At Rent Portland Homes – Professionals, we specialize in property management for Beaverton Oregon, and the surrounding area.
Our team will save you the time, money, and hassle of managing a rental property yourself so that you can enjoy the passive income that comes from owning rental properties.
From rent collection, property marking, maintenance and customer service, our team can provide you with all the assistance that you need so that your rental property in Portland will be a truly passive investment.
Don’t waste of time and money trying to manage that property ourselves, contact us today and let us amaze you with the Property Management Services that we can offer you.
To learn more about the property management services that we can offer you, contact us today by calling (503) 447-7735 or click here to connect with us online.