Is real estate rental a good investment?

Real estate is generally a great investment option. It can generate ongoing passive income and can be a good long-term investment if the value increases over time. You may even use it as a part of your overall strategy to begin building wealth.Click to see full answer. Hereof, are rental properties a good investment?Owning a rental property in addition to your primary residence can be a way for you to build wealth, especially if you may be averse to investing in the stock market. You can eventually own a physical piece of property outright that also produces income. However, rental property investments aren’t always a sure thing.Additionally, why rental properties are a bad investment? There are four big reasons for this: it likely won’t generate the income you expect, it’s hard to generate a compelling return, a lack of diversification is likely to hurt you in the long run and real estate is illiquid, so you can’t necessarily sell it when you want. Hereof, how much profit should you make on a rental property? You need to charge high enough rent to cover your expenses and take home a profit. With mortgage payments to contend with and a tough competition, you may only be able to profit $200 to $400 per month on a property. That’s $4,800 a year, a far cry from the $50,000 we’re talking about for earning a living.Is It a Good Time to Invest in Real Estate 2019?In general, markets with high growth are better bets than those with lower growth, but a stable growth rate is just as important in the long run. Even with interest rates inching up, investing in real estate – and especially in rentals – will be a good move in 2019.