If you don’t currently own rental properties, you should consider acquiring at least one in the near future. Regardless of the current interest rates, owning real estate property is an excellent way to secure future long-term, passive income, and the more properties you own, the more money you’ll earn.

For those who don’t yet own property, here are some of the best reasons to buy at least one rental this year.

1. It doesn’t have to be extremely hard work

You’ll hear almost every real estate investor talking about how much work it is to own a property and manage tenants. While that’s true, there are ways to reduce your workload and eliminate the stress of having to manage tenants. The most effective strategy is to hire a property manager.

For instance, the Fort Worth property management team from Green Residential handles a large number of properties for Texas investors on a daily basis. They screen tenants, collect rent, fill vacancies, and handle repairs and maintenance.

If you’d like to buy property but don’t want to get involved in the details of managing everything, a property manager will be a huge help. You can hire an individual on the side, but it’s usually better to contract with a larger company that manages properties for a living.

2. You’ll have predictable, passive income

Although the income from rental properties isn’t truly passive for a while, it’s only a matter of time before you get there. Just because it’s not automatic and instant doesn’t mean it’s not worth pursuing.

In fact, if you start now, you could start generating decent cash flow by the end of this year. It won’t be much to start, but it will grow with time as you build more equity, make improvements, and pay off your mortgage.

Successfully generating revenue through real estate requires time and effort, and there is real strategy involved. If you feel drawn to buy property, don’t hesitate to seek the guidance of an expert and learn as much as you can before you get started.

3. You can get tax breaks

Taxes are expensive, but the good news is you can access tax breaks when you own rental property. For example, you can claim depreciation over the useful life of your home (27.5 years) and you might qualify to defer capital gains through a 1031 exchange. The way a 1031 exchange works is simple. You can sell an investment property and buy a new one with the proceeds, and pay limited or no tax at that time.

The rules for doing this are strict, however. You’ll need to have a third-party hold the sale proceeds in escrow until you use them to buy the new property. Also, both of the properties involved must be considered like-kind by the IRS.

If you can do a 1031 exchange, there is no limit to how many times or how often you can do it. You can roll over all your gains infinitely and you won’t have to pay tax until you sell the property for cash. This could be years, even a decade or more later. When the time comes, you’ll only have to pay one tax at the current long-term capital gains rate.

4. Appreciation

Real estate tends to appreciate in value over time, which means you’ll be able to generate a profit if you choose to sell it later. You can profit from real estate either by selling or renting. Both have pros and cons, but consider that rents also tend to rise with time, so renting your properties can bring you more cash flow as the years pass.

5. Equity is an asset

As you continue making your mortgage payments, you are building equity in your home. Equity is a valuable asset that is considered to be part of your net worth. You can use the equity you’ve built to purchase additional properties, which is how successful real estate investors build their wealth.

Don’t wait; start investing today

If you’ve been holding off on buying real estate property, now is the time to move forward with your goals. If you’re not sure how to get started, find some experts on YouTube and learn from them. Most successful real estate investors on YouTube offer free information for aspiring investors to help them get started.

Whether you need help with your first purchase or you’re looking for help with tenants, a successful investor will be a valuable resource for everything you might need to learn.