A certificate of deposit will generate a cash flow based on the interest rate that it pays which is the only way it generates a return for the investor.
An investment in a stock that doesn’t pay dividends, would need to be worth more than you paid for it to earn a profit. On the other hand, a stock that paid dividends could make the investor a profit even if it sold for the same price that he paid for it.
Investors can profit four different ways with an investment in rental real estate.
The most conservative investors in real estate make decisions to purchase a rental property based on its ability to generate a cash flow and reduce the mortgage through normal amortization. If the property can offer an acceptable rate of return compared to other available investments, the tax benefits and possible appreciation become an added bonus.
With increased rents and low mortgage rates for investors, rental property can offer significantly higher returns than many of the available alternatives. Contact us for more information- [email protected]; you may be amazed about what is available in the market.