Rents
The big difference in Rent is that in Rental properties you have to follow the market rents. By market
rents what this means is that if you are renting out a 2-3 bedroom home and the neighborhood rents are
ksh14000.00 and you want to rent your property you need to rent it out for ksh14000.00 because the guy next
to you is renting it out for ksh14000.00 you can’t really rent it out for ksh16000.00.
Now at the back end
when it’s time to buy you just deduct that cash flow from your profit that you are going to make as a
result of selling it at a higher price so all the numbers balance at the end. So the rents are very different
in a Rental and Rent to Own. Now in some cases if the costs are really low you might even be coming in
at market rents which is even a bigger bonus because now you are doing a Rent to Own at the same
price as people are renting at. So why Rent when you can do Rent to Own. Now the big difference is
that people might not want to do Rent to Own or they might not have that ksh10,000.00 & Real Estate
Investing.
Exit Strategy
What that means is in a Rental property you are usually holding that property for more than 3 years. You
are usually holding it from anywhere ups to 10-20 years when you are doing a Buy Rent to Hold. What
you are doing is trying to create a passive income from those rents and as the market rents go up so
does your profits. So there are a lot of benefits to doing a Buy Rent to Hold. I mean the offset to this
advantages is that as the property gets older it requires more maintenance so there are more costs. So
are you really making profits? It really depends on the condition of the property and what you have to
put in & Invest in real estate.
Real Estate Investing is still the best investment, How to invest in real estate then why are people still
investing in the stock market, Best real estate investment or other investments.