Owning real estate allows you to leverage the bank's money to acquire large assets with little cash down. The benefit is that you are achieving appreciation on the total value of the property not the initial investment. Growing value in an asset that is not paid for is one of the marvels in owning real estate.

Rental properties are great investments, because you are growing equity everyday while your tenants are paying for that growth. As time passes, not only is the property appreciating in value, but also the principle balance is decreasing. This grows equity in two ways and neither of which you contribute to. In contrast, an IRA will grow at a very slow pace unless you are consistently putting available cash in.

Owning single-family rentals can work to your benefit in any market. The number of qualified buyers often dictates the strength of the market. When the retail market is soft and lending is tight, there are more renters. When the retail market is great, you have a refurbished home ready to sell.

Tax write-offs reduce your taxable income, which equates to actual dollars in your pocket. For tax purposes, depreciation is added to your total expenses, which is not an actual cash expenditure. This allows you to show a loss on your property tax return even when you have positive cash flow.

Real estate appreciation is consistent over the long term. Owning real estate is a very solid, conservative investment when you hold your properties long term.

There is a high Return-on-Investment (ROI) in owning income properties. There are 4 main factors working together: appreciation, tenant paying down principle balance, tax savings, and cash flow.