Orlando Real Estate – Investing in Real Estate? Here are Some Tips – In the past few years, real estate investment has seen a massive transformation in all regards.
Even if we look at Orlando’s real estate market, techniques that actually worked incredibly for an investor, around 10 to 12 years ago, are not even considered now.
As per the Orlando realtors, investors are now constantly evolving and learning new practices to attain new levels of success!
So what are some of the best and expert tips to achieve the real estate investment milestone?
Here is what real estate experts recommend:
Location Matters – Orlando Real Estate
You may think of it as just an old adage but location actually matters! Before you decide to fork over a huge down payment or put yourself in a huge amount of debt, make sure you are making efforts for finding a property in a good location.
How about investing in the worst house but on the best street? This is one of the real estate investment conundrums that you may come across quite often as you delve into more investment opportunities. Investing in the worst house on one of the best streets provides you with an opportunity to easily build equity.
After all, it’s a property on the best street. It’s also a great neighborhood that just needs a lit bit of tweaking. All that you need to do is invest a little amount of money, fix that property up, and sell it to a potential buyer looking for a ready-to-move house in that fabulous location. Orlando Realtors like to call it ‘fixing and flipping’
Be Familiar with Tax Benefits
People who are running the government often look out for private investors to offer housing for people. They do it to shake off their responsibility. They know if private investors fail to provide housing, it would be the government which will eventually be held responsible.
From an investor’s point of view, this means huge tax benefits. One of the most important benefits is definitely depreciation write-off. When you purchase an investment property including a building, you must write off that building’s depreciation as a tax deduction. Even though it is recommended to consult a tax advisor for particulars, typically a residential building is expected to depreciate over 27 years whereas a commercial building depreciates over 39 ½ years.
Make the Most of 1% Rule
If you‘ve decided to invest in a real estate property that you will rent out to tenants, always go with the 1% rule. The rule should be considered when deciding if the property is worth the price or not. As per the 1% rule, any income-producing property should produce at least 1% of the mortgage payment that you make for it each month.
For instance, if you have purchased a property for around $150,000, it means that you should be able to get the monthly rental income of $1,500.
In a nutshell, real estate investment is synonymous with fabulous returns. But don’t forget many people also end up with bankruptcy, especially when they fail to do proper market research. So make sure you are fully aware of what is involved before making a money move! Orlando Real Estate
To get more valuable insight, contact Megan Dowdy.