Navigating the world of real estate investments can be tricky, to say the least. This is why we have taken your most frequently asked questions and handed them over to the experts. The answers will help you move the needle on building wealth through real estate.
What qualities define a good investment property?
At the risk of stating the obvious, a good investment is one with a low buy-in price, and either high potential rent or high after-repair value (ARV). Also, most investors will want to buy in with low-crime, low-vacancy neighborhoods, and avoid the risks of properties on the very low end.
Smart investors look for neighborhoods that are not completely saturated by homeowners, but are not all renters either. Stick with working class and middle class homes as a general rule, unless you intend to specialize in niche markets, such as student housing, apartment buildings and low-end units.… Read More »
Every serious real estate investor reaches a point where they start to worry about being sued and having all of their hard-earned investments taken away by an ambulance chasing attorney and scheming tenant.
The first step many take is creating a limited liability company (LLC), which are easy and cheap to create, and which once upon a time may have actually, you know, limited someone’s liability in a lawsuit. The theory went that you created… Read More »
One of the most touted benefits of owning rental property is a reduced income tax bill. But how exactly does that work? One great way to pay less in taxes is to depreciate your rental property.
Properties, without any repairs, have a limited lifespan. As they deteriorate under wear and tear, the theoretical value of the building and its components gradually decreases. To offset this (again, theoretical) decrease in value and the initial purchase… Read More »
If your latest property tax bill has left you reeling – or at least scratching your head – consider that the asking price, to be negotiated downward.
Swings in the real estate market may mean that the current taxable value on your property is inaccurate. In fact, according to the National Tax Payers Union, up to 60 percent of homes are overvalued. The more startling statistic? Fewer than 5 percent of taxpayers… Read More »
Tax time is fast approaching, and owning rental properties means more prep work… but also deeper deductions. The required bookkeeping can seem overwhelming at first, but for the average landlord it doesn’t have to keep you up all night. In essence, it just comes down to declaring all of your rental income and claiming every deduction. You can hire an accountant to file your taxes, or do it yourself by completing a Schedule E (Form… Read More »