Real estate investing is one of the more profitable and accessible ways to invest your money, but being a landlord comes with a lot of responsibilities. Today I am going to take a look at some ways to mitigate the biggest challenges of being a landlord.
Happy Holidays! Now, a short break from our regularly scheduled programming. RFG is officially over 70 posts old! It’s time for me to thank my readers, and ask the most important question of all: where do I go now?
I’ve repeatedly seen two narratives told over and over again. First of all, debt is bad. Second, although debt is bad, having a mortgage is alright because it acts like a forced savings plan, slowly enabling borrowers to build wealth. But can't the “forced savings plan” idea can be extended beyond simply mortgage debt, if executed intelligently with low interest, short term debt?
Congrats! You are entering the insane world of being a landlord. The only rub? How much to charge. It's a very important question, and one that is a little more complicated to answer than it may seem at first.
One of the main reasons real estate is so attractive as an asset class is its privileged tax treatment. Understanding the full implications of real estate taxes for both primary residences and income properties is a vital part of being a real estate investor.
As I've been writing about buying and remodeling condos, I think it's about time that I go over how much it costs to do condo renovations on a budget. It'll be pretty much impossible to know whether you can turn a profit on a condo remodel if you can't ballpark how it costs to remodel your condo.
It's much cheaper (and easier) to buy and fix up a $300k condo than a $600k house. Having just purchased a condo and renovated it, I can confirm that the numbers pan out, but it's easy to pick the wrong plac and end up losing money. No one wants to buy a $300k condo, put $50k into it and end up with a condo worth $325k. Luckily, the right place can be fairly easy to find if you follow these guidelines.
As I am sure many of you have read over the years, real estate can be an exceptional investment if held over the long term. At one time my family was in real estate, so I've been hearing that since I was a kid. When I was 14, my Dad put a copy of "How I Turned $1000 into Five Million in Real Estate in My Spare Time" in my room, and I was immediately enthralled with the relative simplicity of real estate investment, it's tangibility, and the access to leverage it enabled.