The Advantages Of Buying Rental Property.
On behalf of Nexus Property Management we would like to congratulate you on starting your search for your first investment property. As you may already know, buying rental property is the single best financial decision you can ever make in your entire life. The benefits are leagues away from the next closest investment opportunity. This is part 1 of 4 in our blog series of “Buying Your First Investment Property”. We will cover the benefits of real estate holding and how to use our Nvest® Property Investment Calculator to determine your potential return on investment (ROI)!
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You Are Creating Revenue Streams!
Think about your current job at the moment. No matter how great of an employee you are, or how long you’ve been working there is a ceiling that you will hit financially. This is why you are unable to get rich working 9 to 5! When you buy a 4-family residential building you are creating the opportunity for 3 revenue streams, and 1 unit for yourself to live in FREE! Your mortgage gets covered by the tenants, and you should definitely have some profit left over. On top of this, you are still working and collecting your paycheck!
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The Tax Advantages Are Incredible!
Once you purchase an investment property the government has a new way of treating you compared to being a regular old W2 employee. The differences are outstanding. You can now DEDUCT all of the properties expenses EXCEPT for the principal mortgage payment. There are so many different deductions that I am unable to cover them all here, but these are the biggest ones:
-Property Tax
-Insurance
-Water/Sewer/Common Area Electric Utility Bills
-Mortgage Interest
-Depreciation
After you punch in these deductions (and others) you will watch your taxable income fall very quickly. This means that you are paying less and less taxes at the end of the year. In some cases, if you did renovations and the expenses exceed the income you collected, you can expect to get a refund from the government for improving your property! Crazy right?!
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You Are Holding A Future Lotto Ticket!
When someone purchases a property correctly they are setting themselves up for future options such as taking out a home equity line of credit, cash out refinance, or even selling it if the market is that good! There are many options available for you to extract some of the equity/all of it, and use that to buy your next property. This makes rental property extremely attractive compared to other investments. Could you take out equity from your stock portfolio to buy a property, and the value of your holdings remain the same? NO!
Now that you see the top 3 benefits to holding real estate we welcome you to use our Nvest® Property Investment Calculator. This is a tool that we’ve built from scratch based on needs from investors like you. Click here to try it out! Its free, and don’t forget we are always available for your questions, to give advice, or offer our opinion on any deals you are interested in!
Gregory Rice is the Vice President of franchise sales for Nexus Property Management®.
Nexus Property Management® is a National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.
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