Lior Babazara Explains the Benefits of Real Estate Rental Income

Real estate isn’t all about buying new properties and selling them for profit, which is what most people assume when they think about this industry. The truth is, you can go a different route and buy a property to rent it out. Lior Babazara believes that renting out a property is one of the best investments anyone can make and he actually encourages people to take up this option.

But what exactly is the benefit of doing so? Can’t you just buy a piece of land or house and sell it to someone for a quick profit. Well, the problem is that most people don’t look into the positives of renting out a real estate property. Let’s learn those benefits and positives from Lior Babazara.

It’s Continuous Income

“If you still work a job, there is no better investment for you than investing in a rental property. At any point and for any reason, if you lose your job, you will have a continuous income that will keep you afloat,” says Lior Babazara. He wants you to be realistic with how life works. According to him, many people don’t think of the tough times when they are making a lot of money. However, nothing lasts forever and that’s not a pessimistic approach at all. In fact, every investor in the world believes that and that’s why they invest in many options rather than putting all of their eggs in the same basket.

When you become wealthy, your expenses increase too and you just can’t live without a continuous stream of income no matter the amount of money you have saved in your account. So, think wisely and consider real estate rental income as an investment.

It Helps You Buy More Properties

A lot of the times, people are in a position where they can arrange enough funds to pay the down payment on a house more so when the remaining payments don’t burden them. However, do you know in what situation you don’t have to bear the burden of subsequent payments? The answer is ‘when you have a monthly income covering that expense for you’. That income can come from a house that you have given out on rent. Don’t forget that even a residential house can have 4 different units, allowing you to generate income from 4 different rentals.

So, what you do is you save the income you are getting for a few months until you have the down payment for another house. Once you have that amount, you pay the down payment and get a mortgage deal from a lender. Now, all the monthly mortgage payments on the house will be covered by the previous property that is generating rental income for you. If you have a house with multiple units, you will be generating much more than the amount needed to cover your mortgage payments.

It Can Be as Big as You Want

Commenting on rental income from real estate, Lior Babazara said, “It’s unfortunate that a lot of people think that your monthly rental income from real estate is limited. Well, I always say that it is as limited as you want it to be. If you already have a few residential units generating rental income every month, how about you try commercial rentals next?”

When you give your property to a retail store, you can make a lot of money. In fact, if that business booms, you can increase your rental according to their growth. That’s just how commercial rental work.

Final Thoughts

Don’t limit yourself by defining the real estate industry in a certain way. It provides you with all sorts of options and ways to invest. How much you earn and in what way you make it depend on you. It requires some patience from you but once you have made a successful real estate investment, it is hard to stop because then you want to grow further and try something new every day.

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