Investing in an income-producing property can bring substantial dividends in the long run. Carol and David Bryant are owners of Eden Crest Properties, LLC, based in the Pigeon Forge and Gatlinburg areas of eastern Tennessee. Here, they discuss how you can get a long-term positive cash flow on your investment.
If we can find a piece of property that is producing more than enough income to offset not only the mortgage but as well as the operating expenses, that places the property in a positive cash flow. It also means the owners will have the ability to maintain and hold onto that property until such time they can experience capital gains on the sale of the property.
Finding the correct property that will produce the proper income to offset those expenses is really a no-brainer. That is the best that can be said about it.
Additional Benefits
Investing in income-producing property brings additional benefits to the table for the real estate investor. Income generated by a rental property can help offset the cost of a mortgage and other operational overhead, while the property still produces future revenue through appreciation and strong tax advantages.
In the Smoky Mountains region of east Tennessee, rental cabins have proven to be lucrative investments when pursued with careful planning and attention to the prevailing market. Sevier County, Tennessee, is primarily a tourist economy and the mountain culture is heavily marketed, making cabin rentals extremely popular. A substantial segment of visitors prefer the advantages of a single cabin over multiple motel rooms, for essentially the same dollar.
Overnight Cabin Rental vs Long-Term Lease
The average nightly rate on an overnight rental cabin far exceeds the nightly average for a property on a long-term lease. Not to mention, a rental cabin offers you the convenience of a vacation home away from home without incurring additional travel lodging costs on your part.
A rental cabin can be placed into a rental management program, sparing you the burden of providing your own staffing, management, bookkeeping, maintenance and marketing.
If you are looking to invest, do your homework, do your due diligence, and do not buy a piece of property just because it is inexpensive. Make sure it a solid producer through history, and you will reap the rewards. There is just no better investment.
