Pros of Residential Property Investment
A different advantage of investing in residential property is the potential for consistent monthly net income. If handled properly, investment property can offer a reliable cash flow that is great for gradually accumulating wealth.
Owners of investment properties are eligible for a number of tax breaks, including the ability to write off expenses like mortgage interest, maintenance, insurance, and management fees.
Direct owners of rental property have total control over their money. The choice of the best tenants, the usage of the property as a short- or long-term rental, and the timing of a sale are all at the discretion of the landlord.
A down payment of at least 25% of the purchase price is typically required by lenders who issue loans for rental properties. A minimum credit score of 620 out of 850 is required of investors, and they must also have enough cash on hand to cover up to six months’ worth of loan payments.
Cons of Residential Property Investment
For the house to remain livable and retain its value, rental property needs ongoing upkeep and repairs. In fact, if repair expenses are unforeseenly large, it is conceivable to have negative cash flow in a month.