Friday, March 24, 2006

With such a stable economy in Springfield Missouri, rental property could be an excellent opportunity to build wealth. Just this morning, I was speaking to an investor who has a home in California that is being used as a rental. Although the home has appreciated in value over the last several years, the income that it is producing versus the amount of money he has invested does not make sense. Thus, he is considering selling the home, re-investing his equity in the Springfield market, and his cash flow will go up by over 4 times compared to his current income.

For an investor like this, it takes a negative rate of return into the black allowing for strong stable growth, instead of depending just on appreciation of value. When you depend on appreciation, this is really more of a speculation type of growth, rather than an investment. Although it can pay off and pay off big, the risk is far greater which means you could lose big also. When bubble markets begin to decline, people start to bail out of the market casuing prices to tumble out of control. With a more stable enviroment, one can have steady income appreciation, cash on cash return, and have an excellent investment for the future.

Rental real estate in Springfield is not a get rich quick plan, rather a good stable investment for the future. Of course, with any investment, there is always a risk factor in which one could lose value, properties could decline, and propeties may not rent for the value one hopes to obtain.
To obtain specfic information on retal investing, take a look at our web site at or call me at 800--584-1297.

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