A prime location and a quality duplex allows the investor to receive two financial returns from this long term real estate investment. Learn more about the Annual Return and Equity Return.
During the rental period you receive a monthly income.
Your Renters are paying off your mortgage, paying your property taxes, insurance and expenses while giving you an up-front positive cash flow.
You will deduct depreciation on your tax return each year giving you a cash free reduction in your taxes. Depreciation is computed as approximately 3.25% of the purchase price over 27.5 years. (Your tax preparer may use other methods to give you a greater deduction.) You can also deduct 100% of interest, taxes, HOA dues, maintenance and fees. Depreciation is estimated at $9,725 per year. Consult your tax preparer..
| Your Tax Savings | Monthly | Annual |
|---|---|---|
|
15% tax bracket |
$127 |
$1,521
|
|
25% tax bracket |
$202 |
$2,413
|
|
28% tax bracket |
$227 |
$2,723
|
|
35% tax bracket |
$283 |
$3,404
|
Note: The cash flow is an estimate. Actual cash flow could be different for each individual.
If you sell or do a 1031 tax free exchange or a cash out refinance, your gross equity will be returned in three ways:
In the San Antonio, New Braunfels Metro Area since 1990 we have had an annual increase in value of approximately 4.4% in the MEDIAN PRICE of single family homes and duplexes. Starting at $63,000 in January 1990 to $225,000 in January 2020 – a period of 30 years. This shows a STABLE long term increase in value and SUBSTANTIAL increase in equity over 5, 10, 15 years. Source: Texas A&M Real Estate Center
Each month your tenants make rent payments to cover the mortgage payment that reduces the amount of the principal loan. Over time the principal reduction becomes a significant amount of equity in your property.
I'm interested in:
Bob Rodgers Realty, Inc.
2616 Gallant Fox Dr.
Cibolo, TX 78108
830-708-4859
Bob@DuplexesOfTexas.com
Hecht Real Estate Group
930 S Bell Blvd. #304
Cedar Park, TX 78613
512-310-8313
info@HRGaustin.com
www.hrgaustin.com/property-management/
