The BLOG! - MD WV HOMEBUYER
Investment Real Estate gives you multiple ways to make money unlike most other investment types.
Here are Five things to strongly consider when choosing an investment class.
1. CASH FLOW – When you purchase Investment real estate
correctly the property should cash flow. Over time these cash flows
can passively make your wealthy.
2. MARKET APPRECIATION- If you buy right, over time
historically values appreciate. This will allow you to cash out of your
investment at a higher price then you paid.
3. EQUITY CAPTURE- If you know your market and work
with professional guidance you can purchase property at discounts
and capture equity at the time you buy in.
The advantage to this is can be used in many ways.. Most
importantly you make your money when you buy. If you
refinance the property after repairs are made this will reduce
the amount of cash needed out of pocket, if any.
4. PRINCIPAL PAY DOWN – Your tenants pay down your
mortgage with every rent payment they make. This is why you only
purchase investment property that cash flows. These payments
increase your equity over time.
5. TAX ADVANTAGES – You receive tax advantages related
to mortgage interest, depreciation, any expenses related to your
property as well as 1031 tax exchange advantages.