For the most part, people who invest in real estate do quite well. What is it like to invest in real estate?
Of course, you have to make sure that you are buying the right property, that you have enough money down, and that investing in real estate makes sense for you. However, there are a lot of benefits to investing in real estate that people don’t know about. You can even use your investment as a vehicle for your retirement.
In San Luis, you can buy a property with a few units for $750,000. You can rent those units out for $5,000 a month, giving you a new income of $60,000 a year, which is pretty good!
There are also many tax benefits to owning real estate. For example, you may be able to depreciate on your tax return. The IRS figures out the value of the building. If your $750,000 building depreciates by $18,000 and you are bringing in $60,000, then the taxable amount drops to $42,000.
If you have a loan on your investment, you can also write off the interest. As a result, you will show very little income on your taxes, and you may not be taxed at all for the income you do show.
Finally, the rental market is very reliable in our county. If one of your tenants leaves, you will most likely have another one soon.
As you can see, there are many benefits to investing in real estate. Keep in mind that real estate is not a short-term investment, so you can’t jump in and out. Real estate is a long-term investment that can really help build wealth for you and your family.
Of course, this is just a broad overview of investing in real estate. If you have any more specific questions, give me a call or send me an email. I would be happy to help you!