I’ve been in the rental property business for over two decades, and I thought I’d be wealthy by now. However, there have been significant challenges, and it’s not suitable for everyone. Patience, hard work, consistency, finding reliable help, maintaining high rents, and keeping costs low are essential. You must always be actively involved to keep your tenants happy, your property managers on track, and searching for the best renovation deals. Stock trading might have been a better option back then, but it’s equally unpredictable. Ultimately, do what you excel at. In this market, it’s extremely challenging to find cash-flowing properties. When I say cash-flowing, I mean at least $500 in monthly profit to break even. The $500 you earn will be eaten up by phantom expenses, vacancies, non-payments, and unexpected issues.
Before making any investment decisions, please reach out to me. I’m here to help!
Pros:
When you buy a revenue (rental) property, there are hidden financial wins that no one talks about at cocktail parties — but they’re MASSIVE for building long-term wealth. Here’s the unfiltered truth, broken down:
💸 1. Paying Down Principal = Invisible Savings Account
Every mortgage payment chips away at your loan. It may seem like your paying $2000/month on your mortgage but typically $500-1000 of that is paying down principle depending on money down and interest rate.
Your tenants are essentially saving money for you every month.
After 5, 10, 15 years, you’ve got tens (or hundreds) of thousands in equity.
This is forced savings, and it’s bulletproof if you hold long-term.
📈 2. Hedging Against Inflation Like a Boss
Real estate is one of the best inflation hedges around.
As prices rise, so do:
Rent values → You can charge more.
Property values → Your asset appreciates.
But your mortgage stays fixed (if it’s a fixed rate), which means:
You’re paying off a 2025 mortgage with 2035 dollars. ✅
🔁 3. Leverage = 5X Hedge with 20% Down
If the property increases 5% in value and you only put 20% down, that’s actually a 25% return on your cash.
(5% appreciation / 20% down = 25% ROI, excluding cash flow or principal paydown.)
You’re controlling a $500,000 asset with just $100,000.
If inflation pushes values up, your leveraged position magnifies that growth 5x.
📊 4. Rent Inflation = Growing Cash Flow
Rents typically increase with inflation, but your mortgage doesn’t (again, assuming fixed-rate).
That means your cash flow increases over time, boosting ROI.
In 5–10 years, the same property that broke even could be throwing off serious monthly cash.
🧾 5. Tax Shelter Benefits
You can depreciate the property for taxes — even while it appreciates in value.
Repairs, interest, and other expenses are deductible.
Net result: your real return is way higher than your net income shows on paper.
🧠 Summary:
✅ Tenants pay off your debt.
✅ Inflation becomes your ally.
✅ Leverage turns small gains into big returns.
✅ Time does the heavy lifting.
✅ You win in equity, cash flow, and tax strategy.
If you’re buying real estate for long-term wealth — you’re not just buying a house.
You’re buying a hedge, a savings plan, a cash machine, and a tax strategy all in one shot.
Cons:
And now to figure out if you’re best to buy revenue properties, stocks or other investments for return on investments: Well, its not crystal clear.
You can always check out my blog, real estate vs stocks vs other investments here:
Real Estate Investing versus other investments
If you’re thinking of buying real estate as a revenue property, I’m your guy, I’ve been doing this for over 20 years and can help. With Real estate being expensive, you have to figure out the numbers and you don’t want those numbers to be off. I can help with that.
Jay Bru
480-466-4917 / jay@jaybrugroup.com
