If you are beginning real estate investing then you are probably interested in what the advantages and disadvantages of this investment strategy are.



Here is a brief summary of what the advantages and disadvantages of becoming a landlord actually are.



The benefits of real estate investing are;



1. You Collect Rent Money



Of course the biggest advantage of real estate investing is that you get rent money. If your house is rented out you will receive a check each and every month. Consistent checks mean consistent profits and passive income.



2. The House Appreciates Over Time



Houses are valuable assets. As land becomes more scarce houses will appreciate over time and landowners should benefit from this. In fact, historically landowners have been the richest people in the world in part because the land keeps appreciating.



Some cons of Real Estate Investing are;



1.The Tenet May Not Pay



You pay the mortgage with the tenets rent money. That is a great system, but what do you do when the renter stops paying you? It is something to be aware of. You may get a bad renter and it may take you a while to replace them.



2.Property Damage



Tenets might also damage the property. If they do you'll have to repair it. A lot of tenets really don't care about their rentals and any damages that it might get as much as the person who actually owns the house.



So, what can you do about these 2 problems? Well the most effective thing is to do a rent to own contract. This way the tents feel like they own the house, they will most likely keep it in good condition and pay on time every month.



Real Estate investing really can be a great way to build your wealth and get some extra income. It should be something to take into consideration when planning your financial future.

More Information:

Real estate investing is just one of many ways to create some extra income for yourself and to build your wealth.