Should You Invest In Rental Properties Today?

Should You Invest In Rental Properties Today?

Benefits of investing in rental properties include:

  1. Cash flow
  2. Appreciation
  3. Depreciation
  4. Ability to build equity

These are just a few. If you decide to invest in rental properties, you’ll become familiar with the above list and more.

Generally speaking, real estate also receives favorable tax treatment when compared to other assets or types of income. In addition, investing in positive cash flowing rental properties often provides a hedge against inflation as rents usually increase over time.

In my opinion, and proven by many others, the ability to use leverage makes investing in rental properties the fastest way to build wealth and reach Financial Independence. A dollar invested in quality cash flowing real estate will typically earn more than a dollar invested in a low-cost index fund.

When you begin to invest in rental properties, consider house hacking

The concept of house hacking should also be considered. It provides two great benefits for those looking to achieve Financial Independence.

First, house hacking provides a low-risk way to explore investing in rental properties since the property will serve as both a primary residence and an investment, with rent payments covering most or all expenses.

Second, housing is one of “The Big Three” household expenses. It is typically the largest monthly expense in any budget as the average American spends roughly a third of their income on a place to live. House hacking will either reduce or eliminate entirely the cost of housing. Being able to save and invest more will abbreviate the time to achieve Financial Independence.

Focus on investing for cash flow. Appreciation should be viewed as the cherry on top of a great rental property. Do not invest for appreciation. Appreciation is speculation and appreciation is not guaranteed.

Fiology thanks Drew of Guy on Fire, a FI community residential real estate expert, for shaping this lesson. He invests in rental properties for a rapid route to Financial Independence. Drew is 28 years old and at the time of this article, owns several rental units with a plan to become Financially Independent in under two years.



Take Action:

  1. Educate yourself on the basics of investing in cash flow real estate or house hacking. Attend local real estate investing meetups to meet other investors. Find a mentor and don’t be afraid to take action.

Additional Resources:


“Now, one thing I tell everyone is learn about real estate. Repeat after me: real estate provides the highest returns, the greatest values, and the least risks.” – Armstrong Williams

David Baughier

My passion for helping others led to the curation Fiology. Help me spread the message of Financial Independence by clicking a colorful link above and sharing this post on your favorite social platform. Thank you!


  1. Chad Carson on August 22, 2018 at 9:05 pm

    Thanks for including me! Awesome list of resources here. I feel like I made the All-Star team!!

    • Fiology on August 23, 2018 at 12:01 am


      Well if anybody can claim the title “All-Star” in this corner of the FI community and the real estate investing community in general, it is you. Thank you for all you’ve done and I look forward to reading your new book!

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