Turn Home Equity Into Investment Property Success
Financial Considerations and Potential Returns
Before diving into property investment, it's crucial to understand the financial implications. Consider the costs of property management, maintenance, taxes, and insurance. Research indicates that rental properties can yield an average annual return of 9%1, but this can vary significantly based on location and market conditions.
Furthermore, leveraging home equity might offer tax benefits, such as deductions on mortgage interest for investment properties2. Always consult with a financial advisor to tailor these strategies to your specific situation.