Primary Homeownership Is Not the Only Way to Build Wealth In Real Estate, Here’s How One Man Is Buying Rental Properties Out-of-State

Seven years ago, while visiting Ohio, Hogarth Louis discovered a great opportunity: investing in rental property.

For Louis, a New York City resident, Toledo, Ohio was the right place to buy a home for rent for many reasons.

“I knew I couldn’t afford a property in New York, but it was clear that I could easily afford a house in Ohio,” he said to Finurah. “I chose Toledo because the home and tax costs were low.

Louis now owns a single family home in Toledo, Ohio and plans to purchase additional rental properties.

Photo by Erik Mclean on Unsplash

Investing in rental property is one way for black Americans to build generational wealth. In general, real estate appreciates over time, allowing landlords to build equity in their property. That equity can be used to continually diversify an investor’s portfolio or, for the more conservative investor, build it over time, says Louis.

In addition, the tax benefits associated with rental investments such as loan interest deductions, contractors and other professional services, insurance premiums, maintenance and repairs, renovations, and even travel are seen as benefits.

Blacks interested in investing in rental property can take these five steps.

1. Research emerging areas
Investing in real estate for rental purposes must have long-term potential, Sell Land founder Bob Scott told Finurah.

Real estate in established locations is already becoming expensive. However, anyone who invests in an emerging area has future potential. “Look at its potential,” said Scott. Established real estate is already expensive, so you are likely to be more successful investing in the next big thing. It’s always a gamble, of course, but with in-depth research you can identify the areas where a predicted market boom is expected. “

Read the full story of Finurah here.

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