From the course: Rental Properties 101

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Reducing risk and increasing your potential profit

Reducing risk and increasing your potential profit

From the course: Rental Properties 101

Reducing risk and increasing your potential profit

- [Instructor] In every type of investment we make, we will generally find both advantages and disadvantages. This is true for real estate investing as well. When we understand the pros and cons, we can recognize our options and make informed decisions as a real estate investor, especially in acquiring rental properties. Let's take a look at how we can reduce our risk and increase our potential profit by first discussing the pros of investing in rentals. One of the most attractive advantages or pros is that rental properties provide a steady monthly cashflow. Of course, we only get that monthly cash flow or passive income if we structure our investments correctly. For most investors, this is the main reason for buying rentals, that monthly income. Another significant and desirable advantage is appreciation, the principle that rental properties will appreciate or increase in value over time. Certainly, there's no guarantee…

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