Investing in rental properties can offer numerous benefits for individuals looking to build wealth and generate passive income. One of the key advantages is the potential for consistent cash flow through rental payments. This steady stream of income can help investors cover mortgage payments, property maintenance costs, and still yield a profit.

Additionally, rental properties have the potential for long-term appreciation in value. As the property market grows and demand for rental housing increases, the value of the property can rise, providing investors with a valuable asset that can be sold for a profit in the future.

Furthermore, rental properties can serve as a hedge against inflation. As the cost of living increases, rental income and property values tend to rise as well, allowing investors to maintain the purchasing power of their wealth.

Moreover, rental properties offer tax benefits such as deductions for mortgage interest, property taxes, insurance, maintenance, and depreciation. These tax advantages can help investors reduce their overall tax liability and increase their net income.

Finally, investing in rental properties can diversify an investment portfolio, spreading risk across different asset classes and providing a stable source of income independent of stock market fluctuations.