Rental properties can provide a steady stream of Cash Flow through rental income, which can help you cover your mortgage payments, property taxes, and other expenses. If you have a tenant who is paying rent regularly, you can count on that income as a reliable source of Cash Flow.
Rental properties also have the potential to appreciate in value over the long term, which can help you build wealth over time. As property values increase, your rental property may become more valuable, and you may be able to sell it for a profit down the line.
Rental properties also come with several tax benefits, including deductions for mortgage interest, property taxes, repairs, and maintenance. These deductions can help reduce your taxable income and increase your Cash Flow.
Rental properties can also serve as a hedge against inflation. As the cost of living increases, so does the rent you can charge your tenants, which can help you keep pace with inflation and protect your investment.
Of course, rental properties also come with some risks and challenges. You'll need to find good tenants, manage your property, and deal with repairs and maintenance. However, with the right research, planning, and management, rental properties can be a smart and rewarding investment option for generating passive income over the long term.