Each time you make a change to a rental property, you need to determine whether it is a repair or an improvement. While the terms may seem synonymous, they have a big difference when it comes to tax deductions for landlords and investors. Repairs are deducted in the year you made them, while improvements are depreciated […]
Real estate investments definitely add complexity to your tax returns, but any savvy investor knows that tax season also means the ability to cash in on breaks and benefits you can earn through investment properties. As a landlord, you know that the IRS requires you to report all rental income. You probably also know that […]
When it comes to adding both value and “livability” to a home, the experts agree it all comes down to two rooms: the bathroom(s), and the kitchen. Get it wrong, and you could be looking at a lot of sparsely-attended open houses. Get it right, however, and you could have a buyer signing on the dotted […]
It’s happened to every real estate investor: that simple rehab project that you thought was a quick fix slowly transforms into an expensive ordeal. Sometimes you discover that a property has more damage than you originally expected. Other times, you might learn that materials are more expensive and more difficult to obtain than originally thought, […]
Flipping a house is an exciting and ambitious project that can produce amazing results, but it can also be a source of headaches if you are not fully prepared for the possibility that your project does not perfectly follow your plans. If you’re preparing to flip a house and are concerned about staying within your […]
When you’re ready to tackle a new rehab project, one of the major choices you will be faced with is how you would like to pay for the flip. Even if you have a plan to cover the purchase price of your property, you will also have to determine if you want to pay the […]
When looking for your next property to flip, you may want to focus less on what to buy and shift your attention to when to buy. Along with the old homebuying adage “location, location, location”, investors should make “time of year” a part of their purchasing mantra. You already know that when you’re flipping a […]
Home improvement reality shows make house flips look easy: Pick up a cheap home, put in money for on-trend home improvements, and resell for a major profit. What those programs don’t show you is the hard work that goes into flipping a home — and the fact that the work doesn’t always pay off the […]
In real estate, a hard money loan is a short-term bridge loan typically used when the borrower can’t obtain other types of funding, needs a fast turn around, or prefers not to work with a bank. It differs from other types of loans in that the lender considers the value of the property offered as […]
When you’re investing in real estate, you need to think about capital gains–something you don’t consider with your residential home. Savvy real estate investors understand the importance of real estate tax shelters, which lower their tax obligations. Here are the three best tax shelters you need to know as a real estate flipper. 1. 1031 Exchange […]
