Have you ever thought of buying an investment property such as a mulit-family, commercial property or single family home.
It has been proven that Real Estate over time has been one of the highest yield investments.
When you own a multi-family, you can write off all of your expenses such as home maintenence, mortgage interest, real estate taxes and depreciation. A good tax accountant can help you with this.
When searching for rental income property, do your homework:
1. First, learn about becoming a landlord and commit to being a good one. Study this in great detail. There are many online sources on the web such as http://www.landlordandtenant.com. You can also google "becoming a landlord" and many sources will appear. Know all of your legal responsibilties.When you are committed to being a good landlord, you will attract good tenants.
2. Analyze your financial situation. Get pre-approved. Make sure you have at least 10%-20% for a downpayment.
3. Find a Realtor that can help you determine cash flow. Your realtor isn't responsible for your decisions or your cash flow, but can give you an idea of Return on Investment (ROI). For example, say you find a 4 family for $300,000. Figure out what your downpayment will be, and get an idea of the monthly payment including taxes and insurance, utilities and other incidentals, (oh..also factor in a 25% vacancy rate ( not all units will be filled at all times). After expenses, calculate the profit. This is your return. If the return is minimal or non-existent, you should think twice about purchasing the property.
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