Purchasing a second home to rent out can be a great passive investment idea: You buy a house, your renters pay off your second mortgage and you’ll have supplemental income from your tenants’ rent payments. An investment property is real estate that you buy with the intention of earning investment returns through rental income, flipping the home and/or through resale in the future.

Data released by the U.S. Census Bureau in 2017 shows that 47 percent of rentals were owned by individual investors, and rental properties can generate 31 percent of the average landlord’s annual income.


Article Written By Bankrate Staff

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