Why We Love Residential Real Estate for Investing

Building long-term wealth is a the primary goal of many investors. There is hardly a better mechanism through which to achieve this goal than residential real estate. Few investment vehicles offer the same level of diversification, customization, creative strategy, and most importantly, control. Here are a few reasons why Perseus Holdings is always bullish on the residential real estate sector:

📈 Appreciation

When you buy a residential property, the expectation is that your new property will continue to increase in value over time. Simply ask your parents how much they bought their house for and how much its estimated value is today, you will be shocked (and excited!). Real estate experiences passive appreciation due to things like high demand in the market, limited supply, and economic growth. Historically, real estate is one of the best hedges against inflation. 

💰 Steady Cash Flow

Residential real estate offers the opportunity for steady cash flow. Monthly income from rentals provides consistent and steady cashflow which is a great way for investors to earn passive income that they can use to supplement their normal income or invest into other rental properties. In both good and bad economic times, there will always be a demand for places to live and a market for rentable properties.

🛠 Value-Add Opportunities

Appreciation is a passive way to increase the value of our homes; however, there are ways to increase the value actively. Many real estate investors add value to their properties by investing in creative improvements that drive demand. Some examples of high return on investment value-add opportunities are kitchen improvements, adding an additional bedroom, finishing the basement, and landscaping. There are near limitless ways to add value.

🛡 Control of the Asset 

Of course, people have found success investing in other vehicles such as stocks and bonds. There is a big risk when doing so - We have no control over the company whose stocks we are investing in. The success of the investment is entirely dependent on the executives running the company, the business plan, and the market. In residential real estate we are entirely in control of our investment. The success of the investment is based on the investor's ability to reduce costs, find good tenants, and maintain a thriving rental property. It is much better to steer the ship than to let the winds determine the fate of your investment. 

There are many more reasons to love residential real estate investing. When you are ready to start your residential real estate investing journey or have questions about it contact us here, email at ben@perseusholdingsllc.com, or through our website (link below). We provide the best services in the market for residential real estate investors and look forward to serving you on your investment journey.