Have you thought about buying property to rent out as a tool for building wealth? Or more likely, do you own a modest house with a low interest rate and wonder if renting it, rather than losing that rate forever, might make sense as part of your overall financial plan? Your financial advisor and tax professional will know your specific situation, but I’ve reached out to Jennifer Lovett, a trusted local tax professional who I’m on the board of the Princeton Business Association with and asked her to write a general story about the upside of using rental property to build wealth.
“For years, rental real estate has quietly created more everyday millionaires than almost any other investment class. What’s interesting is that right now, despite the noise, the headlines, and the hesitation, may be one of the most practical moments to get in the game for long-term wealth building.
Prices in many markets have cooled from their peak, not because housing lost its value, but because higher interest rates scared off impatient buyers. That hesitation has created opportunity. Less competition means better negotiating power, more seller concessions, and the chance to buy solid properties without the frenzy that defined recent years. Savvy investors know that you don’t build wealth by buying when everyone feels confident, you build it by buying when others are unsure.
Rental demand, on the other hand, has never been stronger. Affordability challenges and lifestyle flexibility are keeping more people in the rental pool longer. That means consistent cash flow for owners who buy right. Even in markets where appreciation slows, rents tend to keep moving upward over time, quietly covering expenses while the tenant pays down the loan for you. The combination, cash flow plus equity buildup, is hard to replicate elsewhere.
Another underrated advantage is leverage. Real estate allows you to control a large asset with a relatively small amount of capital. While other investments often require full cash exposure, rental properties let inflation work in your favor. As the cost of living rises, rents rise too, but your fixed-rate mortgage stays the same. Over time, that gap widens, and what once felt like a tight deal can turn into a strong income producer.
There’s also the tax side of the equation. My favorite side and I can’t believe it took me this long to mention it! Depreciation, write-offs, and strategic planning can dramatically improve after-tax returns compared to traditional investments. It’s one of the few ways the tax code actively rewards people for providing housing. There are entire books written about how to unlock tax advantages through rentals, I just wish I had more time and space to dive deeper.
Rental real estate rewards patience, not perfection. You don’t need to time the market perfectly. You need a long-term mindset, solid fundamentals, and the willingness to start. Also maybe a good broker by your side. Five or ten years from now, today’s concerns will be background noise but owning income-producing property will still be doing what it’s always done: quietly building wealth, month by month, tenant by tenant.”
Jennifer Lovett EA, CAA, MSCTA
Jennifer Lovett – Appointment availability
Trident Financial Services LLC
978-504-2555
THIS STORY SUBMITTED BY: Jennifer Lovett
