The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
There are several great reasons to add real estate to your investment portfolio, including consistent passive income and appreciating property values.
Real estate often requires a considerable amount of capital and being a landlord can become more of a job than an investment.
Fortunately, there are a growing number of options available for passive investors to add real estate assets to their portfolio with a low minimum investment that doesn’t come with property management headaches.
One such option is Arrived Homes, a real estate crowdfunding platform that allows accredited and non-accredited investors to buy shares of rental properties for only $100.
How The Investment Platform Works: Arrived Homes finds and acquires profitable residential rental properties, then offers shares of the properties to investors through its online platform.
The company handles the operational headaches involved with managing rental properties while investors collect their dividends and wait for the property to appreciate in value over time.
Current Rental Property Offerings: There are currently three offerings available on Arrived Homes, which all have a minimum investment of $100.
The Lallie - 2,460 square foot house located in Summerville, South Carolina. The property is currently rented for $2,495 per month.
The Mojave - 1,500 square foot house located in Farmington, Arkansas. The property manager is currently seeking a new tenant for an anticipated rental rate of $1,595 per month.
The Badminton - 2,521 square foot house located in Lexington, South Carolina. The property is currently rented for $1,995 per month.
View current offerings on the Arrived Homes platform.
Should You Invest In Rentals? Real estate comes with several benefits, but rental properties aren’t for everyone. It’s important to note that real estate is an illiquid investment.
You won’t be able to simply cash out of your shares at any point if you need access to your money. Rental properties also come with vacancy risks. While property managers are typically able to fill vacant properties within 30 to 60 days, any periods of vacancy will cut into your cash flow for the quarter.
If you’re comfortable committing to an investment term of five to seven years and can handle potential dips in cash flow if a property loses a tenant, investing in rental properties is a great way to earn passive income and build equity.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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