I am a mom of three and I have been a real estate investor for 11 years now. I started with duplexes and single family home flips and my husband and I are now invested in apartment complexes and mobile home parks. Real estate investment has been great for my family’s finances and lifestyle.
Real estate investment is a wonderful business for women, especially moms, but there are surprisingly few women in this space.
I’m always striving to improve my skills and knowledge, so I attend a lot of real estate conferences and seminars. When I’m in these conferences, often less than 10% of the attendees are women.
It’s surprising because real estate is a particularly great investment opportunity for women – especially moms. Here are 4 reasons why I think real estate investing is particularly great for moms:
1. Cash Flow and Passive Income –
Provided you invest well, your real estate investments should provide cash flow from day 1.
In other words, after you deduct expenses from the income from your tenants, your have profits that you get to keep. It’s a GREAT way to make money, and it’s mostly passive income (i.e., you don’t have to work for it – the money just comes to you).
2. Life-style Friendly Business –
Remember that part about receiving cash flow that’s mostly passive?That means that while you are making money your time is freed up for you to spend more time with your family, travel, etc.
Since we are all about helping moms find more time for themselves, we love this.
3. Appreciation –
Property values aren’t always rising, but over the long term all real estate values tend to rise or appreciate. This means that in addition to the cash flow, your net worth is also increasing as the value of your properties increase.
This is helpful for you and can be a vital part of leaving a legacy for your children.
4.Tax Benefits –
The federal government decided that they wanted to promote property ownership, so there are all sorts of tax benefits in the tax code for doing so.
First, unlike other businesses you might own as an entrepreneur, rental cash flow is not subject to self-employment tax. In other words, if you make $25,000 in rental income in a year or $25,000 with a side-business selling crafts on Etsy, you’ll pay less taxes on the rental income.
Another way in which you get to keep more of your cash flow is through something called depreciation. It allows you to deduct a portion of the property value from income and pay less taxes. In some cases, even though you’re getting income from your investment property, your property will reduce your overall tax burden (so you’re paying less taxes on all your income – not just on your income that you receive from the property).
For these 4 reasons and more, real estate investing is great for moms.