With the stock market looking a little shaky and inflation driving up costs across the board, people want more options for generating passive income. The highly creative might start a blog or run a YouTube channel. Of course, those aren't ideal options for many people.
If you're in a position where you have money but limited time, real estate investment can provide some options. After all, there are approximately 20 million rental properties out there, most owned by individuals.
You do need a target area in mind, either where you live or a destination where you might want to live someday. One popular option is Arizona.
Not sure where to start? Keep reading to find out how to get started in Arizona real estate.
Buying Property
While you have a lot of options, Phoenix is probably your best bet for property investment. The area has seen a lot of growth in recent years, particularly in the tech sector. So, there are a lot of tech worker transplants looking for housing but not necessarily looking to buy homes.
Phoenix has an excellent property appreciation rate and a good rent-to-mortgage ratio. If you're looking at investing either as a local resident or an out-of-towner, you'll want a good real estate agent. They'll help you find good properties, including ones that aren't necessarily listed yet.
Benefits of Rental Properties
Rental properties remain a popular investment strategy for good reasons. The biggest benefit for many investors is that the properties generate income on a monthly basis whenever you have a tenant in the property. Ideally, the rent is high enough to defray your mortgage costs.
Property typically gains value over time, which makes it easier to sell and generate a profit down the road. You can also see a number of potential tax benefits. Real estate in the right market can also help protect you from inflation, as the value will often increase faster than the rate of inflation increases.
Property Management
If you get even somewhat serious about rental property investment, you'll soon find that the demands outstrip your available time. That's as true for local property owners as out-of-town property owners.
You need a local partner company that understands residential property management. They lift the burden of daily management tasks from your shoulders, such as rent collection, property maintenance, unit marketing, and even evictions.
That lets you focus on the big-picture aspects of your investments.
Arizona Real Estate Investment
When it comes to real estate investment, Arizona is a popular option. It sports excellent winter weather, which can make it a draw for tourists and help you fill up a vacation rental.
If you want something a bit more stable, though, you'll want properties near Phoenix. The rapid growth in the area's tech sector means a lot of potential tenants, high property appreciation, and good rent-to-mortgage ratios.
HomeRiver Group Phoenix provides residential property management services for Phoenix property owners. For questions or more information about our service offerings, contact HomeRiver Group Phoenix today.
