There are no perfect investment avenues and real estate investment is no exception. For each advantage there is for tying up your money in investment property, there is at least one disadvantage. It is important that you go into any venture with your eyes wide open. Investing in real estate may be a great way of increasing your net worth, but it’s not necessarily quick, and rarely is it easy!
Investing in Indianapolis Residential Real Estate:
Compare the Pros and Cons
Take a minute to review some of the pros—and the cons—of investing in single family real estate.
|When buying single family real estate, you can do one unit at a time.Single family rentals are easier to sell than large multi-family dwellings or commercial real estate.Real estate investment can be good business experience for those who are not necessarily business-oriented.
A real estate business can provide an excellent long-term tax break.
|Generally requires more “hands on” involvement than other investment options.Maintenance and repairs take time, money or both. (And always seem to take more of both than planned!)If you are planning on a long-term investment, finding good tenants, keeping them and getting the rent paid can be difficult.
You have increased exposure, both legal and financial.
Your cash is tied up in “bricks and mortar” and is not immediately accessible.
- Do you have the right personality for real estate investing and property management?