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Investment Properties
Investment Properties - Many people buy property
as an investment to reap the tax benefits as well as increasing property value while
receiving rental income. These properties can be SFR (single family residence), Condos,
Townhouses or 2 to 4 unit structures.
There are many ways to acquire an investment property.
If you have enough equity in your primary residence you can refinance its equity as a
cash out loan and purchase another.
You may inherit a home from family or some interest in
one, it should always be considered that selling is not your only option. You can rent
it out to supplement your present income or take a small mortgage to buy out the other
parties involved.
When choosing a investment property be sure to consider,
location, property taxes, rents in the area and value. Be sure the property will appraise
for the purchase price.
Some investors may purchase a property where the rent does
not cover principal, interest, taxes and insurance, there is actually a monthly loss called
negative gearing. This creates less annual income to be taxed by the IRS while allowing
you to claim the interest on your investment.
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