Early on in my real estate investing career, one of my goals was to buy one rental property a year.
One year, I bought seven rental properties, followed by nine more properties the next year.
Instead, I could improve the real estate deals I already owned, bringing them from good to great, while also adding new alternative investments to my portfolio.
When it comes to real estate investing, every deal is unique, but the “average” real estate deal varies based on your market.
For my friends and me living outside of Philly, the average deal was a 2 to 3-bedroom twin or row home that could rent for $750-$1,000 a month, and it usually cost well under $100k.
Try to save money on taxes wherever possible, find the highest and best use of that property at that time, and utilize the best financing available, either through terms or the proper use of equity to increase cash flow.
For real estate investors, the biggest hit usually comes in the form of a capital gains tax when selling a property.
One of the simplest strategies to avoid the more expensive, short-term capital gain tax is to wait a year and a day before selling.
What can you do with the property to get the most “bang for your buck”?
Do you use any tax strategies or finance hacks?