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FREE REPORT
Before You Buy A Rental
SECRET # 4 -- Tax Advantages
With rental properties, there are many tax advantages. In contrast to deductions for your primary residence, which are
usually only home mortgage interest and property taxes almost everything else is tax deductible. This includes depreciation
and operating expenses, such as repairs, maintenance, and insurance.
When you buy your rental property consider, acquiring it through a tax-deferred 1031 exchange to avoid paying capital
gains tax on the appreciated value. The rules for properly doing a 1031 exchange are challenging and complex. Be sure to
hire an attorney and/or tax advisor who is an expert at these kinds of transactions.
SECRET # 5 -- Appreciation vs. Cash flow
So which came first the chicken or the egg? Before you acquire any rental property, ask yourself “what’s more important to
me, appreciation or positive cash flow?” Bear in mind that multi-family-units that bring in the bucks each month are likely
to be in the modest neighborhoods that aren’t likely to appreciate greatly and they can have higher tenant turnover.
Where as single-family homes in the most desirable part of town that appreciates quickly, rarely generate the sort of
income needed for positive cash flow due to high carrying costs.
If appreciation is the goal, then look at the ones that have traditionally appreciated well in the past even in down markets.
If you want guaranteed positive cash flow then make sure your real estate agent is showing you income producing
properties that have favorable balance sheets to back up these claims. Ask if they have reputable, established clients.
Make sure you see the P&L statements for these properties for at least the previous two years. Note what’s been done in
capitol improvements and what you can expect in the areas of repair costs, and projected maintenance costs, association
fees and other expenses.
Most investors want stable tenants and positive cash flow. I also have a product that can help to maintain both. After all
with more positive cash flow you can both maintain and improve your properties to make long term residency attractive to
your tenants. With this product we help show people how to create a tremendous amount of equity in their home in a
short period of time. Or if they choose, to pay of their 30 year mortgage in as little as 10-15 years without refinancing and
with little or no lifestyle changes. Would something like this interest you? To contact one of our specialists for a free
consultation to help you achieve this remarkable opportunity go to http://JaxHomebuyersolutions.com.
I’ve been waiting for years for a market like this!
The real estate market has changed drastically in the past 18 months. In fact, it doesn’t look very good out there to the
average eye! Prices have flattened and in some markets are actually declining. I know many investors who are sitting on the
sidelines just waiting to see what unfolds.
Maybe you are too?
Well the truth is I have been waiting for years for a market like this to appear! Now that it is finally here I’m ready to
celebrate! Why...
Here's a little secret (just between you and I), there is even MORE MONEY to be made in a down-market then in any market
that is on the rise. This is why you see the most successful investors CASHING CHECKS, while everyone else is holding their
breathe waiting for the market to pick back up.
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