What An Investor Needs To Know About Investing In Real Estate

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What An Investor Needs To Know About Investing In Real Estate

  • Location Location Location!

    The property needs to be in an area of large population growth.

  • Cash Flow

    The cash on cash return on investment should be a minimum of 3%.

  • Equity returm

    Equity return is composed of:
    • Accumulated Appreciation
    • Accumulated Principal Reduction
    • Down Payment
    • Tax Savings From Depreciation

  • 1031 Exchange

    The best way to sell property is by a tax deferred 1031 Exchange. Self financing is a viable alternative so you are taxed only on the amount of the principal you collect each year.

  • Cash out

    The best time to do a cash out is 5 to 15 years after property purchase, before maintenance costs grow excessive. Don't sell your property before you select property.

Consult Your Tax Preparer.
 
This is an estimation.  Different properties, different locations may give different results.

Your renters are paying off your mortgage, paying your taxes, insurance and expenses & giving you an up-front positive cash flow.