Why is rental property such a great investment?

Three main reasons:

1. Value Appreciation - Both home values and rental rates increase over time.

2. Tax Benefits - The income is not subject to social security tax AND you get a large tax deduction for nearly 30 years (called depreciation).

3. Income Stream - Your cashflow overtop of your expenses is income, while your mortgage is being paid for.

Pictured is our rental we own (it’s getting some updates now in between tenants). My wife bought it in 2009 and lived there until 2011 when we got married. She got a great deal on it and it’s now worth twice what she paid for it (economy was not great then). On top of that, when we first rented it in 2011 it was renting for $800 per month. Today it’s now renting for $1200 per month.

If you’re in a position to purchase one, or keep your existing home when you move, it’s a great long term investment! All of Hendricks County has seen significant increases in home prices and rental rates the past few years. Brownsburg, Avon, and Plainfield are especially hot!