When you invest in real estate, you have to have a long term vision and patience. Unlike buying stock which can be readily purchased and sold, investing in real estate does not afford a quick sale. While it is true that in years past, people were able to flip properties and make fast money in real estate, for most real estate investors the idea is to buy and hold real estate. Some investors in real estate will benefit from federal income tax breaks and other investors in real estate can hold a piece of property and later sell it and buy other property while deferring the payment of any federal income taxes until the real estate is cashed out. Real estate is not a liquid investment and you may need to consider a long term strategy or option even if you are considering a shorter term investment in real estate. Read our articles on investing in real estate and learn about problem tenants and how to handle them. Learn about finding the right team to help you navigate the world of real estate investing. And, finally, learn about how to structure your investments, insure your real estate investments and minimize your federal income taxes.
Selling A Long Term Investment Property
What is the tax burden will be when selling an investment property? If you plan to invest in another investment property, you may be able to use a 1031 exchange and defer taxes owed. If the owner has taken depreciation on the investment property, they will need to "recapture" the depreciation.
Financing A Mortgage On An Investment Property Without U.S. Citizenship
Financing a mortgage for an investment property where one of the owners is not a U.S. citizen can be tricky. Most mortgage lenders are reluctant to finance a mortgage on an investment property to an immigrant who does not have a long-term visa or has become a resident of the United States. Ilyce and Sam help this reader figure out the best way to finance a mortgage on an investment property where his potential co-owner does not have U.S. citizenship.
Selling Investment Property To Renters
In an installment sale, mortgage lenders may have the right to demand the loan be repaid immediately. It's a good idea to check with your lender to see whether the due-on-sale clause will be triggered before closing on an installment sale.
Mortgage Loans For Financing Investment Property
There are several mortgage loans available for financing investment property. One of the best mortgage loans for financing investment property is the FHA 203(k) loan, but you must live in the house for at least one year. A construction loan is another type of mortgage loan for financing investment property, but you might be required to pay higher interest in order to waive some other fees.
Protect Assets From Lawsuit On Rental Property
When you own rental or investment property you may be concerned about liability. You may want to transfer your property into a limited liability corporation (LLC), but that could cause your mortgage lender to call your loan in for full payments. There are other ways to protect yourself from lawsuits when you own rental property and aren't ready to pay off the mortgage.
Vacation Home Rental Property: Become A Vacation Home Owner And Landlord
Owning vacation home rental property can actually earn you an income as home owner and landlord. Ilyce's column discusses Christine Karpinski, a vacation home owner and landlord who uses her vacation home as rental property. It can be time consuming, but vacation home owner and landlord Karpinski says vacation home rental property can make a meaningful income.
How To Purchase Fixer-Uppers For Renovation And Resale
Flipping real estate can be lucrative if you get the right financing and like to make home improvements. How can you finance the purchase of a fixer-upper? Try finding a partner, using a 203(K) rehab loan from FHA or finding a HUD home.
Where To Start With Investments In Empty Lots
A buyer is interested in investing in empty lots. By purchasing a vacant lot, a buyer is betting the value of the neighborhood will rise and the land will sell for a big payoff. Visiting to the local building department to determine the type of building that can be built and any potential zoning changes is a good place to start if you're looking to purchase empty lots.
Home Repair Adds To Real Estate Investment Costs
When you buy a home as a real estate investment you need to also consider the costs it will take to maintain the home. Home repairs, home improvements and home maintenance can all add up and increase what it costs to keep your real estate investment in fine shape. Learn the different kinds of home repairs you should keep in mind when buying a home.
Rental Property Owners Need Real Estate Attorney To Protect Investments, Limit Liability
Owners of rental property should consult and retain a good real estate attorney to protect their investments and limit liability. There are multiple avenues rental property owners can use to find a real estate attorney to help protect investments and limit liability. Calling your local bar association is the best way to find a real estate attorney, protect your investment, and limit the liability that comes with owning rental property.