If you are looking for an alternative way to make money and have an interest in the housing market, you may want to consider owning a residential investment property.
With many benefits - especially the longer you have the investment - investment properties can assist with extra income, instead of many different types of employment.
Is this something you want to consider?
Learn the benefits of investment, tips to getting started with an investment property and the types of tax deductions you will receive as a property owner.
1. Benefits of Investment
The benefit about owning real estate long term is the return on your investment.
When buying in popular areas where housing prices increase in value each year, the longer you own the property, the more money you could potentially make down the road on a sale.
Or imagine this:
When renting your property to tenants, you will typically be able to cover the cost of the mortgage and add to your savings fund. Plus, when you purchase a property when interest rates are at historic lows, this will help you make even more on the investment.
Plus - the current market in Denver is full of people interested in renting, so finding a suitable tenant should be fairly easy to manage.
2. Tips to Get Started
When you are ready to invest in a rental property, there are a few key steps to take…
Look for up and coming areas that people want to live in. The more in-demand will help you easily rent a property out at a profitable price. You will also need to do your research when it comes to price so it is comparable with other homes and apartments in the area.
Once you find a property to buy, consider any upkeep or issues it may have. You will need to budget for issues that may arise.
If you plan on being hands-off, you can work with a property manager to handle the day-to-day with your tenants. You can incorporate them into your investment and still make money with little to no work on your end.
For an in-depth look for those looking to explore this industry, read REtipster’s, The Beginner’s Guide to Buying Rental Properties (a case study)
3. Tax Deductions
As a property owner, you will qualify for many great tax deductions and benefits. It is important you take advantage of these to help you with your return on your investment. One of the tax deductions you can qualify for are any repairs you need to make. This will help in that initial stage if you are prepared and pay for repairs, you will get some of that back. Next, you can also deduct insurance as a landlord too. You can also write-off interest on the home as well. If the home depreciates in value, that is also a tax write-off too.
Are you ready to become a property owner? DenCO Property Management and Sales will help. We are a property management and sales company that will manage your rental so you can focus on other priorities. Take a look at our information for Denver property owners
and let us help. Contact us at 303-722-9688 today to get started.