Definition
A property you own that you rent out to tenants, providing a steady stream of income and investment potential.
What to consider
- Factor in maintenance and vacancy periods in your planning.
- Know the local rental market to set realistic rent prices.
- Keep detailed records for tax and management purposes.
Real world scenarios
- Ashley rents out her condo’s spare room, covering part of the mortgage with the tenant’s monthly payment.
- Maintaining her rental property, Lana budgets for routine upkeep and occasional major repairs to retain the home’s value.
- Jon invests in several rentals across different neighborhoods, reducing risk if one area’s demand dips.
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