With housing prices reaching an all-time high, many people are having regrets about not buying property earlier. The general consensus is that owning a home seems to be a great investment because of the spike in selling prices.

How an Investment Property Can Benefit You

Having an investment property can benefit you in several ways.  It can offer you a sense of stability and security in the future. When the time is right, you can sell it and earn a profit. In the meantime, you can use it to open up another flow of income by using it as a rental.  This provides immediate return on your investment. Because you are renting out a place to live, chances are you’ll have tenants staying for at least several months.  You are getting constant return with little maintenance. All you have to do is pick up the rent check each month! Depending on the area, you can even increase the rent if housing prices are going up year after year.

Here’s the Deal for Homeowners

If you’ve purchased a home around 2011, you may have a decent amount of equity. If you’ve purchased your home even earlier, that’s even better. It sounds crazy to purchase another piece of property when you’re already paying off a mortgage.

But there’s something you may not realize:

You can use your home to pay for the down payment. You’re paying off your mortgage month after month. It’s about time your house did some work for you, right?


Home prices have skyrocketed in the most recent years, making it a seller’s market. While housing prices are expected to eventually go down, it might not happen for a while. Housing prices are still expected to climb. This means there’s still time for you to invest in an investment property and gain some equity.

OK, So You Might Be Wondering:

If I’m already a homeowner, how can I afford an investment property when I’m already paying for my current home?

The answer is: use your home to pay for the down payment.

If you’ve been current on your mortgage payments and have enough equity, you may qualify for a cash out refinance. You can take the money you received through your refi and use it to cover the down payment costs.


You’re the owner of the property, but someone else is paying for it. It gets even better. Since you are the owner of the property, you’re the one who gets to benefit from the tax deduction! You can deduct the mortgage interest, the property taxes, repairs, etc. You cannot, however, cannot use renovations as a deduction.

If you find in the future that the timing is right and you no longer want to rent, you can sell your property and walk away with a profit. You can even move into your investment property if you want to and sell your previous home. If you have children, you can continue renting it out and keep your investment property for them so they’ll have something in the future.

Whatever the case, there are lots of options and benefits to having additional property and it’s not as difficult as you think to get one.