How Rental Properties Build Long-term Wealth

As a real estate investor, you have many different types of investment opportunities. One proven real estate investment method is to buy and hold rental properties. Unlike short-term investments, like flipping houses or wholesale deals, rental properties produce passive and ongoing income.

Types of Rental Properties

Even within the rental property investment strategy, you have different options. With today’s online tools like Airbnb and Vrbo, short-term vacation rentals are easier to manage. Properties located at popular tourist destinations are a great option for short-term rentals.

However, long-term rental properties require less work while producing regular monthly income. As an investor, you can buy and rent single family homes or multifamily housing. Both offer a solid investment option.

When you first purchase a property to rent, investing in some maintenance and renovation may benefit you by producing a higher rental rate. Start with one rental property and build your portfolio over time. You may want to invest in different types of rental properties to determine which works best for you.

What is Passive Real Estate Income?

With real estate investing there are two main categories of income. First, short-term investments offer a quicker payout, like with buying, renovating and selling a property. Wholesale real estate also offers a quick profit because you act as a broker to find a buyer for a property and then only take a fee for your effort. These methods are a great way to boost your income.

Long-term investments, like rental properties, create passive income. Passive income simply means you receive ongoing income without ongoing work. This is like when an author writes a book and continues to receive royalties over the years as their book sells.

When you own rental properties, you get paid rent regularly. This becomes income that you use to pay for the loan on the property, upkeep and maintenance. Any amount above that becomes profit. Plus, you accrue wealth based on the increased property value. Rental properties are a great addition to any real estate investment portfolio.

How to Get Started – The Three E’s

Starting out in real estate investment may feel intimidating. We understand! That’s why we created Real Estate Investing for Women (REIW). Our community of likeminded women offer support, encouragement and knowledge for both new and seasoned real estate investors.

Men dominate real estate investing, but persistent women succeed as well. With the right tools and support, you can build wealth through real estate investing. Rental properties create long-term wealth with the combination of ongoing passive income and increased property values.

1 – Education

Education is the first step to invest in rental properties. Thankfully, today’s investors have access to limitless online resources. Learn from online options like blogs, eBooks, webinars, videos, podcasts, online classes and more. In addition, you now have the option to benefit from mentoring and training no matter where you live. Invest in online real estate investment classes, coaching and mentoring.

Online resources are great to gain knowledge. However, live events like retreats and networking opportunities build community and your network of other real estate professionals. Attend a retreat or find a local networking group to build face-to-face connections.

2 – Execute

Learning about real estate investing from the outside is the easy part. But, the best education comes when you act. You must put your knowledge to work to grow your wealth. Don’t fear failure. Look at your mistakes as opportunities to learn and improve for the next time.

Start with a smaller real estate deal, like a single-family home at an affordable price. As you execute your first deal, you’ll make connections and receive hands-on experience. When you join the REIW community, you’ll also have access to our group for support along the way.

3 – Endure

You will face obstacles and setbacks. This is normal. Don’t become discouraged and don’t quit! Common obstacles include finding funding, locating qualified renters, managing and collecting rents and overcoming your fears.

Don’t take setbacks as a sign you shouldn’t invest in real estate. Instead, see your mistakes and challenges as learning opportunities. If you persist, each deal will become easier and your confidence will grow. This is the way to build long-term wealth with rental properties.

In addition, as your confidence increases, you may want to venture into other types of real estate investments to diversify your portfolio. Work at your own pace, but don’t give up!

Focus on Your “Why”

To find the motivation to educate, execute and endure you must also identify and focus on your “why”. Each woman’s why is different but at its foundation, your why is the specific reasons you pursue real estate investing.

Your why may include a desire to live well in your retirement years, the ability to support your family as a single mom or a wish to have more disposable income for travel. No matter your reason, let your why drive you to action.

Many women have a desire to give back to the community and support others. Real estate investment offers opportunities to connect with and build community. As your knowledge and wealth grows, you’ll be able to share your experiences with others.

Real estate investment is so much more than simply buying and selling properties. It is a lifestyle that creates freedom and a path to pursue your bigger “why”.

Benefits for Women Real Estate Investors

Women that succeed in real estate must be driven. Investing in real estate requires commitment and risk. But, it’s worth it! No matter where you are in life, real estate investment is for you. Create financial freedom and a flexible schedule. Plus, when you invest in rental properties, you create ongoing income for added financial security.

Whether you’re interested in real estate investing as a side gig or your full-time career, there’s a place for you in this industry. At REIW, we offer training, mentoring and community support to help you on your journey. We founded REIW as a mother-daughter team to offer other women the knowledge and community we didn’t have when we started with real estate investing.

We are passionate about helping women find freedom and purpose through real estate investing. Contact us today to join our community of likeminded women and start on your path to independence and long-term wealth.