Real Estate Investing Tips

There are at least four key issues you need to consider regarding investing in rental real estate.  And while there are several ways to invest in Real Estate, this particular list offers just some of the advantages of owning rental property.

1. "The Buy"- As is the case with any investment, the goal is to buy low and sell high.  Today’s Real Estate market offers plenty of opportunities for a savvy consumer to purchase a home for 80 to 85 cents on the dollar.  Remember the old saying, "You don’t make money when you sell a house, you make money when you buy it!"

2. Cash Flow – If the rental income on your property is greater than your mortgage, which is often the goal, then you are making additional income.  It is important to note that this income has not yet been taxed.

3. Principal Reduction – Allowing someone else to make the payments on your house is a beautiful thing.  Just like the mortgage on your personal residence… your investment mortgage is going to be amortized with most of the interest on the front end of the loan.  Time is very powerful in this regard.  You can keep your money in other investments, earning you interest over the long run.

4. Tax Savings – Your mortgage interest as well as all operating expenses and improvements to your property are tax deductible.  This is also a great savings over time.

Hopefully these tips will help you when trying to decide whether to own rental real estate or not.