Why Own Single Family Rentals?

There are many compelling reasons

In a previous TOTD we considered a prototypical 1% investment. When we factored in all the expenses, we were left with a rather disappointing $118 per month income. Why would anyone go to all this trouble to make $118 per month? The reasons are Principle pay-down, Appreciation, Depreciation, and Deductions. These four items, if graphed in three dimensions show the increasing wealth as time goes by. Picture the horn of trombone – flaring out in all directions. The volume inside that horn grows exponentially with each millimeter of length. 

Now think of that horn as representing a 30 year cycle – the average mortgage. Over time, other people will pay off your loan, the property will likely double in value, and you will enjoy considerable tax advantages through depreciation and deductible expenses. Truly a “cornucopia of benefits.”

Click here to see a video lesson Flipping America founder Roger Blankenship has prepared to help you visualize this. It’s just 5 minutes long and you will fully understand why he has chosen a cornucopia to represent this.

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