iv started noticing it during the great recession, but it's amplified in the past few years as stock valuations have grown high and hedge funds have looked to other asset classes. Many of them have moved into rental property, investing in low cost of living or moderate cost of living areas like indianapolis. And when more homes end up getting bought up by wall street, renters end up with less flexibility, less autonomy, a distant relationship with their landlord. So it's all so bad for ordinary middle class investors, mom and pop investors who want a small portfolio of income properties.
#373: How do people make money in real estate?
Many focus on rental income, but this is only one of five ways that properties create wealth.
We explain five surprising ways that real estate builds your balance sheet: cash flow, appreciation (market-based and forced), tax benefits, principal paydown, and instant equity at closing.
Why does this matter for long-distance investors?
If you’re investing out-of-state, you’ll need to choose a city or town. How do you decide? First, think about how you want to bias your returns. Do you want to optimize for cash flow? More appreciation potential? Identifying this will help you align your city/town selection with your financial goals.
If you’ve been thinking about investing in real estate – especially if you might invest long-distance – you’ll love this episode.
Enjoy!
For more information, visit the show notes at https://affordanything.com/episode373
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