Why Invest In Residential Real Estate?

Why Invest In Residential Real Estate? 

Residential real estate investing is accessible to most and easy to understand. It’s a great way to start investing and begin earning money through equity appreciation, and monthly cash flow. The best part is that the mortgage is paid off by someone else.

Everybody needs a roof over their head! People come into our country every day. This causes movement within the real estate market. Some people rent, and others buy. We know that this trend will continue, as our population continues to grow, year over year.  

How Does It Work? 

First, we determine the goals, financial power, and level of involvement of the investor. Then we search for a single-family or multi-family property in a prime location with suitable demographics. A property that needs some improvements means you can buy it at a lower price. Then invest some money for renovation and/or construction. This will improve the property, raising the value, and then the landlord can also charge a premium rent in the end.

Next is tenant selection. In most cases, this step is more important than the actual property. The C.R.E.S.I. Property Management team performs diligent and in-depth research by interviewing prospective tenants and their references. Through Equifax, tax and debt history are accessible.  

The final step is to determine how the property will be managed. If the property is cared for well, it will appreciate. For people who do not want the headache of being a landlord, there is The Landlord Protection Program. This program is for properties in Ontario, with landlords who want little or no involvement in the day-to-day duties and responsibilities.

In the end, the tenant pays down the mortgage, so every month they’re paying off part of the loan. All while earning a monthly cash flow to save for the future.