Investing in Rental Real Estate

Have you ever considered getting into the business of rental real estate? This could potentially be one of the BEST times to invest in a rental property! Interest rates are low, and the market is flooded with available properties at some of the lowest prices in recent history.

What are the long-term benefits of investing in real estate?
* Cash flow from rental income
* Increase in value due to appreciation
* Increased equity as the mortgage is paid down
* Tax advantages
* Leverage (the potential for a great return with little money down)

Tax-Related Information:
* Generally, you will file a Schedule E with your Form 1040 (Individual Tax Return)
* For most taxpayers, you can deduct up to $25,000 in losses related to your rental real estate (with a phase-out if your adjusted income is over $100,000, and a carryforward of those losses until the property is sold)
* Qualified Real Estate Professionals do not have the above limitation
* Residential Real Estate is depreciated over 27.5 years, so an additional 'non-cash' deduction is taken each year
* The depreciation is 'recaptured' upon sale of the property and taxed at a special 25% tax rate
* Additional depreciation is taken for purchases of personal property, such as appliances
* You can deduct any expenses related to the rental property, including (but not limited to) mortgage interest, property taxes, insurance, homeowners dues, utilities, repairs and maintenance, supplies, travel, and management fees

It is very important to consult with your own tax advisor before investing in a rental property! Your individual tax situation will have a great impact on the immediate benefits of owning a rental property. Remember that investment in real estate always involves a high risk factor, and does not necessarily generate immediate cash flow or tax advantages ... so your goal is generally the long-term possibility of increased value and cash flow.

If you would like more information, or need the name of a great mortgage professional (your first step in considering a purchase!), please feel free to contact me at any time.

Monarch Real Estate Consulting

I'm very excited to announce that I will now be working as an Independent Broker, doing business as Monarch Real Estate Consulting!

My goal is to continue to provide real estate services - sales and consultation - for friends, family and referrals ... I have enjoyed so much working with the people in my 'sphere', and meeting new friends as well.

You can expect to receive the same great service in my new capacity as a business owner, with a lot of personal attention, and focus on the details ... and hopefully we will also have fun in the process!

Please feel free to contact me if you have any questions ~ And thank you for your support!!

cynthia@monarch-real-estate.com

Monarch Real Estate Consulting Website

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