Hate Owning a Home? 8 Reasons You Might Feel Differently About an Income Property

Some people can't wait to go out and buy a home -- until they realize how much work it actually is. If you've come to detest homeownership, then the idea of investing in an income property may be largely unappealing. But here's why you may not mind owning a rental property.

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Your primary home doesn't serve as an ongoing income source. If anything, it's an expense you bear. On the other hand, an income property can help you make money. So even if you have to cover its mortgage and upkeep, that may not be a bother.

Investing in real estate is a good way to diversify your investment portfolio. If you own an income property, you can collect rent payments even when the stock market declines. You can also look to that home as a valuable asset when your portfolio value sinks.

ALSO READ: How to Invest in Real Estate: A Complete Guide

If you buy an income property to rent on a short-term basis, that home could serve as your private escape when it's not occupied by guests. That's a nice option and could provide an easy way to take low-cost vacations. You can also share your income property with family and friends when it isn't booked.

When you own an income property, certain expenses you incur can serve as tax write-offs. These include property management fees, maintenance costs, and more. You can't do the same with your primary home.

ALSO READ: Real Estate Investing: Is Hiring a Property Manager a Huge Waste of Money?

If you own an income property with a flexible lease or a series of short-term leases, you may be able to capitalize on hot housing markets as they pop up. You can't do the same with your primary home -- sell once the market starts booming -- because you'll need a place to live. If you sell your primary home while real estate prices are up, you'll have to replace it with another costly property.

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You may not feel comfortable paying to maintain your primary home because it's not a moneymaking source. But if your income property is doing well, you might feel differently about paying for upkeep. That means you won't have to tackle that time-consuming work yourself.

You may be paying a lot of property taxes due to having chosen a primary home in a great school district. But your income property doesn't have to be in an area with top schools, especially if you plan to market it as a short-term rental. That means you get more choices for finding a lower-cost home to invest in.

ALSO READ: How to Calculate Property Taxes

Having an income property in your portfolio could mean increasing the total amount of home equity you have. That equity could serve as a cash source should the need arise. It could also give you peace of mind knowing it's there.

There are many differences between owning a primary home and owning an income property. You may not be thrilled with the former due to the expenses and work involved. But investing in the latter could really end up being a smart move.

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