When considering investment properties, first of all, it must be determined that it is profitable and a good idea to purchase rental properties. Let’s talk about this aspect. Owning rental property produces rental income which, if after expenses are deducted produces a profit, would be viewed as a good investment. Add to this the possibility that property has the potential to increase in value over time and you have some solid reasons to purchase investment properties. If the rental income is paying more than the monthly mortgage amount leaving some excess for home repairs, it is possible the home could be paid off entirely by renters. At some point in the future, this same home can be sold with the seller receiving the full value of the property.