Lex Levinrad Real Estate Investor, Speaker, Author & Mentor

On today's podcast episode I talk about why you should buy rental properties. I explain why investing in real estate (specifically rentals) is such a great investment compared to other investments like stocks, bonds and mutual funds. The first thing you need to understand about investing in real estate is the five main benefits which are: 1. Appreciation 2. Cash Flow 3. Amortization 3. Tax Deductions 4. Depreciation APPRECIATION  HUD has been keeping track of single family house prices since 1964. The typical house in 1985 was worth $85,000. Today it is $420,000. That is 5 times the initial price!  To put that into perspective, imagine buying a house today at $420,000 and having it be worth 2.1 million dollars in 40 years (if you got one of those new 40 year mortgages).  That's an example of long term appreciation in real estate. Do you know what the price of the Median Single Family Home in the U.S was in 1975? A New Single Family Home was just $39,000! That's appreciation. In 1963 it was just $18,000. But w