Welcome to the world of real estate investing! How you use your rental real estate, how you manage it, how you finance it, and when you choose to sell it all play a role in how profitable your investment is.
Like everything related to money, whether in business or the general economy, the profitability of real estate goes in cycles, some logical and some illogical, such as the boom and bust we’ve seen over the last 10 years. The fact is, the earth’s population is increasing, but the supply of land upon which to build stays the same. The principle of supply and demand says that, over time, increase in demand with a limited supply of product results in the product’s increase in value.
The same is true of your rental property—over ...