As Spring in upon us many parents around the country are recognizing the great investment they made- many many many years ago in the purchase of the rental home. College decision time is upon us. With the college decision process comes the ‘how to pay for college’ question.
Some long term financial reasons to buy a home, as a rental property, can include the following:
Leverage- the down payment and the asset are controlled by you- and this provides you leverage moving forward.
Tax benefits- these are always best to discuss with a TAX professional but such items as taxes, loan interest, repairs, improvements and depreciation can all be a benefit- when looking from a tax perspective.
Location- Location- Location- when buying your selected property it is important to know what ‘value’ your location gives you. The right location can be more important that total square footage in many many markets.
Tenant Rent- this should be simple math- the rent covers your principal, interest, taxes, insurance and expenses and if a 15year note is taken at the right time and you are capitalizing on rates at levels- unheard of in the past- then the rent alone could pay off the actual Real Estate DEbt- just in time for college tuition time- allowing you to turn that asset into leverage or liquid, as needed.
Happy House Hunting in North Texas. If you need a REALTOR® to list your current home, or are looking to buy or rent in the North Texas region- Give Dawn a call/text 860-575-5001 at Avery Properties/Avery Realty Group- where Sellers Enjoy 4% Listings and Buyers Enjoy Cash Back!! (ask me how…..) If you are interested in becoming an investment/rental buyer in the North Texas market let’s talk and discuss how working with a REALTOR® can help make the process easier.