What are the pros and cons of owning a rental property?

Let’s take a look at some of the biggest pros and cons of owning a rental property today. Key takeaways People invest in rental property for a number of reasons, such as to diversify an investment portfolio, generate rental income, and have more direct control over their investments.

Is buying a rental property worth it?

Owning rental property also comes with the ability to offer monthly income, as well as some potential tax deductions. But keep in mind that owning a rental home requires effort and risk on your part. The best way to determine whether buying a rental property is worth it is by weighing the pros and cons.

What is a residential rental property?

Residential rental properties come in all shapes and sizes. From single-family rental homes to condos and coops, townhouses and mobile homes, small multifamily properties with 2 to 4 units, fractional ownership shares of a home, crowdfunds and REITs. That’s one of the best things about real estate.