18 Reasons to Invest in Real Estate

7. Create Ready Cash Flow

One of the great things about investing in real estate that is ready to rent out to others is that cash flow will be created in short order once the property is rented. Many times, investors will buy properties on a discount and invest time and money into making repairs in order to maximize their overall returns on the home or building by charging a higher rent. It is not uncommon to see up to 20 percent or more in cash on cash returns for a property in addition to the expected appreciation that most locations in the United States realize on a regular basis. These returns can either be reinvested in the property or used to pay down the mortgage note depending on one’s preferences.