Bonds and rental real estate are both considered passive investments. As of 2013, US Residential real estate yielded from 5% to 8% in rental income on top of inflation, while finance allows leveraging that return. This is a huge premium paid over bond investor, and this difference is not observed in other countries.
Being a landlord in the US is not as simple as buying a bond. Given the difference in yield, we believe it makes sense to look into US investment, describe below what investment in US real property entails.
US Real Estate Investor Setup
Here is a typical setup for people who invest in US real estate to get rental income. The material is intended to give a synthetic overview of the US rental market, and what are the relevant points to consider.
- Case for US Real Estate Investment
- Types of Residential Properties
- Profitability and Solvency
- Practical Aspects of Home Buying
- Types of Mortgages
- Financial Analysis of Mortgage
- Overview of US Rental Property Taxation
- Tax Consideration Specific to Foreigners
- Legal Entity for Ownership
- About the author
I am a foreign investor myself, this content relates to my personal experience as an investor in the US.