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What Are The Tax Benefits of Investing In Real Estate

The important benefits of investing in real estate are increase in property value due to appreciation as well as good cash flow in the form of rental income. When you get rental income from the rental of a residence unit, there are some expenses you may deduct on your tax return. IRS considers that you are exchanging you old property for another real estate property. In order for the IRS to view the home as your primary residence, you should have owned it for five years and lived in it for at least two years. Using a real estate agent can help you a lot in real estate investing. What Does a Real Estate Agent Do For a Buyer A real estate agent will help the buyer in finding the right property at a good price which is a critical factor to succeed in real estate investment. Turnkey rental property investing has really led to increase in the number of people turning from stocks to real estate in the US. Another benefit of investing in real estate vs. stocks is how you can use debt. Other cities that made most analysts top ten residential real estate markets include Dallas, Nashville, Raleigh-Durham, and Salt Lake City. This year is shaping up to be a very strong year for investors who are in the residential real estate market and there are many markets in the US to choose from.

Financing turnkey rental properties

We all know that in a real estate investment “cash-is-king.” But, if an investor does not have that much cash in hand, finance is definitely required to meet the purchase price of an investment property. There are many options available to finance turnkey rental properties. What is a Turnkey Property A Turnkey Property or a turnkey rental property is a real estate investment property (mostly a house or an apartment) that an investor can buy and rent in a short period of time. Financing Turnkey Rental Properties If you need financing to purchase a turnkey rental property, you must pay attention to the information given below. In that case if you take 10% of it out and invest into some turnkey rental properties in some of the fastest growing real estate markets, it may be a good investment for a passive rental income. Financing Turnkey Rental Properties With Loan There are multiple factors and conditions that affect on getting a loan for the purchase of a turnkey investment property. Types of Mortgage Options For Financing Turnkey Rental Properties A fixed-rate mortgage means your mortgage interest rate and your total EMI of principal and interest will stay the same for the entire term of the loan. Can FHA Loans Be Used For Financing Turnkey Rental Properties You can generally rent your FHA home if you have lived in it long enough. Lenders Financing Turnkey Rental Properties Finding lender for financing turnkey rental properties is a not a tough job. Another top-rated direct mortgage lender for conventional, VA & FHA home purchase or refinance loans is The J.G.

How the Tax Code Rewrite Favors Real Estate Over Art

Real estate investors were given a gift after Congress voted to maintain what are known as 1031 exchanges, a section in the tax code that allows for property to be sold tax-free as long as the proceeds are used to buy more property. Investors whose real estate holdings are comparatively modest — and their heirs — were given an added bonus: The estate tax exemption for couples doubled to $22.4 million, allowing those investors to conceivably pay no tax on their properties, ever. If the investor who bought real estate in San Francisco sold the property, the money could be used to buy another property in San Francisco — or anywhere in the country — without the seller’s paying a tax on the appreciated gains in the original property. Combine those tax-free gains with the higher estate tax exemption, and it is possible that a real estate investor would never have to pay capital gains or estate tax on tens of millions of dollars in real estate. Mr. Scheriff, who completed about 400 exchanges for his clients last year, gave this example: A person sells a building in New York for $1 million and uses 1031 exchanges to buy two rental houses on a golf course in Florida. In the last major tax overhaul, which occurred in 1986, a provision in the code allowed for a delay of 180 days between selling one property and buying another, without any tax on the gains from the sale of the first property. also allows people to do “reverse exchanges” — buying a property first and then picking other properties of equal value to sell without paying tax. To avoid paying tax, the client used the proceeds to buy the land on which a McDonald’s sits. Top collectors, who may spend millions of dollars for a single work of art, have taken advantage of 1031 exchanges that allowed them to use sales from their collection to buy new art — and save the nearly 30 percent tax on the gains. “I think many collectors, with or without the tax benefit, are going to buy and sell art,” he said.

Buying a rental property is cheaper in the winter — here are the 26...

Cleveland Increase in annual investment return: 12.25% Median home sale price (winter): $69,950 Median home sale price (summer): $77,500 Savings on home purchase: 10% 22. Dallas Increase in annual investment return: 12.37% Median home sale price (winter): $166,950 Median home sale price (summer): $201,875 Savings on home purchase: 17% 21. Detroit Increase in annual investment return: 12.47% Median home sale price (winter): $132,000 Median home sale price (summer): $165,000 Savings on home purchase: 20% 20. St. Louis Increase in annual investment return: 12.82% Median home sale price (winter): $91,125 Median home sale price (summer): $110,000 Savings on home purchase: 17% 17. New York City Increase in annual investment return: 14.88% Median home sale price (winter): $309,000 Median home sale price (summer): $405,733 Savings on home purchase: 24% 11. Minneapolis Increase in annual investment return: 16.08% Median home sale price (winter): $163,823 Median home sale price (summer): $205,000 Savings on home purchase: 20% 10. Seattle Increase in annual investment return: 17.81% Median home sale price (winter): $389,500 Median home sale price (summer): $517,000 Savings on home purchase: 25% 8. Columbus Increase in annual investment return: 18.61% Median home sale price (winter): $131,000 Median home sale price (summer): $175,000 Savings on home purchase: 25% 6. Chicago Increase in annual investment return: 21.19% Median home sale price (winter): $185,000 Median home sale price (summer): $250,000 Savings on home purchase: 26% 4. Cincinnati Increase in annual investment return: 23.76% Median home sale price (winter): $85,500 Median home sale price (summer): $110,203 Savings on home purchase: 22% 2.

What the Heck is Mortgage “Note” Investing? The Start of a Journey

Have you ever heard of people talking about note investing? Probably not! It is not a topic that you are discussing over coffee or at a social event.  Would you be...

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5 Reasons Why to Sell This Summer!

These buyers are ready, willing and able to purchase…and are in the market right now! This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move. Don’t wait until this other inventory comes to market before you decide to sell. There Will Never Be a Better Time to Move Up If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. It’s Time to Move on With Your Life Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than having the freedom to go on with your life the way you think you should? Members: Sign in now to set up your Personalized Posts & start sharing today!