I like rentals! There are very few investments where you can invest 10,000.00 to 20,000.00 and turn it into 150,000.00.
An investment in stocks or bonds that earns 10% will double in 7.2 years. (the rule of 72) or @ 7.2% your money will double 10 years
example invest in stocks [email protected]% in 10 years = 20000.00, 10 more years = 40,000.00
invest in a 100,000.00 home, 10,000.00 down, 15 years = 150,000.00 home! (And yearly tax benifits)
Sounds Good!, but I have three rules to follow!
RULE # 1) The rental has to be close!
.....This is like a second job! You have to meet people, repairmen, renters.... if it is to far, it will take to much of your time!!!
RULE # 2) If your life takes a $hit you could live there.
.....This is a nice way of saying "If I wouldn't live there!" DO NOT BUY IT!
RULE # 3) The numbers have to work.
.....A three bedroom ranch in St Clair Shores @ 180,000.00 rents for 1300.00 per month or so, BUT a three bedroom Warren alum. ranch @ 90,000.00 will rent for 900.00.
As far as what form should I hold my asset?
Choices;
Personal
Corporate
S Corporation
Partnership
LLC
To hard to type why for each T.M.I., each has a use.
Personal is the best. Any other way means a tax return and 300.00 min. per year in fees. If you hold it in your personal name the activity is easy to file on your tax return on 4/15 and is inexpensive. (one of the best ways to deduct on 1040) The savings can be spent on great insurance to C.Y.A. It is also best to own it alone, that way YOUR work is rewarded.
So much more to say if.....partners....high risk....commercial....low income.....bla bla bla.
Hope this helps
Taxman
Last words of advise. If someone tells you that you need an enity such as an LLC be caucious of the taxes!!!!!! Alot of people hear good things about one type of company over another, ALWAYS ASK IS THIS THE CHEAPEST TAX WAY TO GO!
An investment in stocks or bonds that earns 10% will double in 7.2 years. (the rule of 72) or @ 7.2% your money will double 10 years
example invest in stocks [email protected]% in 10 years = 20000.00, 10 more years = 40,000.00
invest in a 100,000.00 home, 10,000.00 down, 15 years = 150,000.00 home! (And yearly tax benifits)
Sounds Good!, but I have three rules to follow!
RULE # 1) The rental has to be close!
.....This is like a second job! You have to meet people, repairmen, renters.... if it is to far, it will take to much of your time!!!
RULE # 2) If your life takes a $hit you could live there.
.....This is a nice way of saying "If I wouldn't live there!" DO NOT BUY IT!
RULE # 3) The numbers have to work.
.....A three bedroom ranch in St Clair Shores @ 180,000.00 rents for 1300.00 per month or so, BUT a three bedroom Warren alum. ranch @ 90,000.00 will rent for 900.00.
As far as what form should I hold my asset?
Choices;
Personal
Corporate
S Corporation
Partnership
LLC
To hard to type why for each T.M.I., each has a use.
Personal is the best. Any other way means a tax return and 300.00 min. per year in fees. If you hold it in your personal name the activity is easy to file on your tax return on 4/15 and is inexpensive. (one of the best ways to deduct on 1040) The savings can be spent on great insurance to C.Y.A. It is also best to own it alone, that way YOUR work is rewarded.
So much more to say if.....partners....high risk....commercial....low income.....bla bla bla.
Hope this helps
Taxman
Last words of advise. If someone tells you that you need an enity such as an LLC be caucious of the taxes!!!!!! Alot of people hear good things about one type of company over another, ALWAYS ASK IS THIS THE CHEAPEST TAX WAY TO GO!