As a company that only focuses on non-U.S. residents buying U.S. property, we have an interesting perspective regarding the best tip to generate passive income. Even in a high-interest rate environment, investing in U.S. real estate or real estate in general with the mindset of buy and hold is a proven way to hedge against inflation. When you put resources into buy and hold real estate, you have a consistent and predictable source of revenue. As the credit market tightens and interest rates continue to increase, the demand for rental properties will increase. Eventually, the market will soften, and there could be a correction in rates. However, with long-term rental contracts, most investors should see little impact giving you a long-tail projection for rental income.
The difference between the rent collected and your expenses is your income or “free cash.” If calculated correctly, you can utilize this “free cash” to cover your bills, save for the future, or even make a greater real estate portfolio. Whether you are a U.S. expat or a foreign national, you can buy a U.S. property solely for passive income, such as vacation homes, corporate rentals, short-term rentals, long-term rentals, etc. Long-term hold properties with long-duration fixed interest rates could potentially provide a predictive passive income in your retirement years.
This strategy can provide a regular source of income in the form of monthly rent payments and has the potential for long-term appreciation and diversification of your investment portfolio. The potential benefits of investing in rental properties include the following:
- Regular income: Rental properties can provide a source of regular income through monthly rent payments.
- Potential for long-term appreciation: Property values can appreciate over time, providing the potential for capital gains when the property is sold.
- Leverage: It’s often possible to use leverage (i.e., borrowing money) to finance the purchase of rental properties, which can help you acquire more properties and increase your return on investment.
With America Mortgages’ Investor Rental Mortgage (AMIRM), overseas investors can now qualify for a U.S. Mortgage using ONLY the property’s rental income! America Mortgages has a 97% approval rate for both U.S. Citizens & Foreign Nationals. That is our sole focus and our expertise. Contact us today to speak to one of our loan officers at [email protected].
For more details, please visit us at www.americamortgages.com