If you’re a new real estate investor who’s seeking a consistent income from your investments, rental holdings are a great option to consider.
Rental holdings are properties that are purchased, rehabbed (if necessary) and then “held” and rented out for a profit.
This type of property serves as a profitable option for individuals who are seeking a regular income from their investment properties. Once the cost of the property is paid off, the rental fees are nearly all pure profit. Unlike wholesaling or flipping, rental holdings bring in a steady stream of income rather than a large lump sum, making this investment option ideal for retirees, for instance.
Property management is one point to consider for rental holdings. Tenants will turn to you, the property owner, whenever there’s a problem at the home or commercial property. Some property owners will choose to hire a property management company to tend to these matters, while others prefer to handle property management on their own.
There’s also the matter of finding and screening prospective tenants. Some property management firms will tend to this, while others may turn to a real estate agent specializing in rental properties. Others still prefer to oversee the process on their own.
As with any investment, there is a moderate degree of risk associated with rental holdings, but if the property is occupied by a tenant, the risk of losing money is minimal. This is why it’s important to purchase a rental property in an area where the rental market is strong. Chicago and the surrounding suburbs are a prime example of a thriving rental real estate market in the U.S. Chicago’s role as a major business center makes real estate very much in demand, especially rentals, which are popular amongst professionals and families alike.
The other financial risks associated with rental holdings are incidental, such as property damage caused by tenants or nature, or an unexpected repair, but insurance can be used to negate a large portion of this risk.
If you’re ready to acquire rental holdings in Chicago or the surrounding area, please take a few minutes to complete an investor’s form.
Questions about getting your start in real estate investment and wholesaling? Contact Greg Teele with Teele Enterprises, Inc. at 224.343.6890.