Chicago Investment Properties

How To Evaluate The Potential Of A Rental Real Estate Investment

A rental real estate investment can be a great way to build your personal wealth, and may be a good option for you, especially if you are uneasy about investing in the stock market, or just want to diversify your investment portfolio.

With a rental property, someone else pays your mortgage, and over time your equity grows. You can eventually own a physical piece of property outright that also produces income.

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Before you decide to invest in a rental property you should calculate the return on your investment to see if the deal is worth making. What return is reasonable to expect on your money? What do you need to earn in order for the investment to be worthwhile?