The 101: Making Money With Real Estate Investing
One of the best parts of investing in real estate is that there are so many different ways to make money. That means in some scenarios, risk can, at times, seem risk free. Now don’t get misunderstand, there is always risk involved when you’re investing. In other words, if you plan correctly even mistakes can be made up for if other areas of your investments are making money. This concept (multiple revenues of potential income) is what drives so many people to real estate investing. Take a look at some of the methods below and see how they can help shape your goals in real estate investing.
Appreciation
It is widely known that the housing market roughly doubles every twenty years. Now this doesn’t mean that there won’t be ups and downs in the line graph that show movement in your income year over year. Various costs play into determining why prices rise consistently in the long term such as land values and availability, labor costs, and of course lumber and other building materials. This makes real estate investment extremely attractive to some, as you know if you’re in it for the long haul, there is always, in fact, more money to be made.
Cash Flow
This is the basics of why everyone gets in to investing in the first place. A method of generate cash flow on a monthly basis. How can you quit your job if you have no money coming in? That is why when getting in to real estate investing it is imperative that you make sure you’re only buying real estate that has lower monthly expenses than the rental income by a good amount.
Equity
If you buy a property for only $50,000 that resides in a neighborhood of, on average, houses that are $100,000 and you put in $20,000 to fix it up you’ve just gained $30,000 in equity towards your net worth. Real estate investing is one of the only methods of investing that can have such a large turnaround so quickly.
Tax Advantages
When it comes to the United States real estate investors pay the lowest taxes of any for-profit group. By using depreciation deductions against your properties you can actually reduce your earned income tax on your cash flow.
Sometimes all of these things can seem like a lot to take in, and if you don’t have a lot of time to dedicate to running it like a business itself, can be very stressful. That is why Buckeye Northwest Realty is here to help. Contact us today to learn more about what we can do to help with your dreams of real estate investing! Our highly skilled team is made up of dedicated property managers waiting to assist you in taking that next step!
