Investing in Campbell Real Estate — Now is the Time
If you’ve been considering investing in Campbell real estate, now is a great time to take the plunge. After all, mortgage rates are at record lows.
Real estate investment creates an excellent passive income stream – which is taxed at a lower rate than wages. Further, passive income from rental properties tends to rise; as the market shifts, rental rates typically increase, but your mortgage payments stay the same.
The Secret to Successful Investing in Campbell Real Estate
I always encourage investors to look at multi-unit properties. In Campbell, multi-units are typically duplexes or fourplexes, but they can have as many as twenty-plus units.
The advantage of a multi-unit dwelling is that they sometimes go for the same price as a single-family home – but instead of just one rental income, you get two, four or more. This helps with maintaining positive cash flow.
For example, if you buy a single-family home for $500,000, your mortgage will likely be about $3,500/month. However, it’s challenging to rent out a half-million-dollar property for more than $3,000/month. The resulting $500 shortfall means you’ll need to feed the investment every month. Add in the cost of repairs and maintenance and the proposition quickly becomes a money pit.