What An Investor Needs To Know About Investing In Real Estate
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Location Location Location!
The property needs to be in an area of large population growth.
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Cash Flow
The cash on cash return on investment should be a minimum of 3%.
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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.
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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.
Your renters are paying off your mortgage, paying your taxes, insurance and expenses & giving you an up-front positive cash flow.