Rental Property Depreciation For The Real Estate Beginner That Will Maximize Profits

Rental Property Depreciation For The Real Estate Beginner That Will Maximize Profits

Rental properties generally produce four forms of income. Cash Flow Property Appreciation Principle Reduction Tax Benefits We are going to dive right into the fourth form of income, specifically rental property depreciation.  The IRS allows residential rental properties to be depreciated over 27.5 years.  This depreciation does not include the land value and only the building or structures on the property.  This value is a tax deduction, lowing your total taxable income.  When starting depreciation, remember to use only the…

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Reasons Why Real Estate (Rental Properties) Will Always Beat Stock Market Returns Part 1

Reasons Why Real Estate (Rental Properties) Will Always Beat Stock Market Returns Part 1

Through the years, I have invested in everything from stocks to precious metals, even making a short unsuccessful attempt at currency trading.  While a diversified portfolio is essential to mitigate risk, too many people completely overlook real estate, instead focusing on traditional securities, particularly stocks.  In this two-part article, we will compare stocks to rental properties, focusing mainly on security (part 1) and typical returns (part 2). Part 1: Stocks are subject to changing market conditions, complex regulations and economic…

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Investment Property Mortgage Requirements

Investment Property Mortgage Requirements

  I like to think of the rental-property investment cycle as four phases: The Fun – Searching properties and negotiating the deal. The Reality – I am under contract and I need to pay for this property. The Work – Managing and maintaining the property. The Payoff – The sale of the property after years of mortgage amortization and property appreciation. This article will focus on the reality phase, specifically, the investment property mortgage requirements.  Since the housing bubble and great…

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Why Real Estate Should be a Third Leg in Retirement Investing

Why Real Estate Should be a Third Leg in Retirement Investing

As a young professional, I realized retirement in today’s world required more financial planning and long term goals than our fathers before us. I looked at retirement as a three legged stool. Most people simply achieve two legs of their stool through social security and passive involvement in a work place sponsored 401K plan. I was no different until I turned to real estate investing as my “3rd leg”. I quickly watched as this leg became the concrete pillar of not…

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