If you love the idea of being a landlord, buying an investment property may be the wealth-building option for you.
Real estate has earned its reputation as a sound investment that builds wealth and credit.
Most people, however, don’t have cash on hand to purchase a house or apartment building outright. Still, if becoming a landlord means taking out a 30-year mortgage, the monthly payments from the tenants should be enough to service the loan and build equity for you, while leaving some cash flow so you can maintain the property.
Keep credit utilization low. When maintaining a property, having access to credit can be helpful because it lets you make repairs and keep things in good living condition for your tenants.
Keep a cushion of cash. Build an emergency fund in your savings account, and keep your credit paid down so you always have that cushion to fall back on during any crisis.