Rental Property InvestmentRental real estate can be a good option for some people. There are several advantages of owning a rental property. Tenants pay you rental income. Your property can appreciate due to market conditions and/or sweat equity (home improvements). It can provide you with sizeable tax benefits (deduction of operating costs, depreciation, etc.). Rental property can also help diversify your overall portfolio. Finally, it can act as an inflation hedge as rent will typically increase along the lines of inflation.
For people thinking about owning rental property, here are some things to consider:
Assuming you have the risk tolerance and capacity (assets and income) for a rental property investment in retirement, here are some of your options: