Real Estate Investing & the Passive Investor
Being a Hands On Landlord is Not a Requirement in Owning Real Estate
Synopsis: The combination of real estate appreciation, tax incentives and predictable income is the trifecta of real estate ownership. But do you want the hassle of being the rent collector and the maintenance overseer, or the possible poor PR of being the landlord? Watch the interview with best selling author, real estate economist and talk show host of The Real Wealth Show, Kathy Fettke.
Most people know you get to deduct your interest payments on your primary residence. In fact, many people go from renting to owning a home simply for those tax breaks. But most people have no idea they can get even better tax incentives from owning rental property. If you have to make repairs on your primary residence, you can’t deduct those expenses on your tax return. But you can on your income properties.
But that’s not all. You can deduct just about any expense incurred, as long as it’s part of the cost of doing business. Property taxes, repairs, maintenance, even travel to and from the property are all-deductible. All this can add up to free money at the end of the fiscal year.
But before you fall in love with the economics of real estate ownership, how about adding the deduction of a property manager. Yes, outsourcing all the hassles of ownership may very well be the way to go. You need to shop property management like vetting a financial adviser. You need to do some due diligence on real estate management firms. Being a passive investor is keeping yourself scarce and letting the property management firm lead from out front.
This press release contains selected content from Kathy Fettke’s Amazon Bestseller Retire Rich with Rentals.