Local Real Estate Comments and Ramblings

head_left_image

Are Rental Homes an I.D.E.A.L. Investment? PT.2

Are Rental Homes an I.D.E.A.L. Investment?

There are a lot of investment options available for us today.  Stocks, bonds, mutual funds, gold, silver, annuities, etc can all be a part of a solid retirement plan.  

for rent


Some people may claim that I am biased, and maybe that is so.  However, I firmly believe that rental homes are an I.D.E.A.L. investment and should be included in every retirement plan.  Over the next several post I will discuss why this is so and give you some ideas to help you with your real estate investment planning.

Keep in mind that there are no promised returns.  I think the examples that I give are realistic but please consult with your own investment and tax advisers.
*****

As we go through this series I will be using an example of  a 3 bedroom 2 bath home with a purchase cost of $100,000.  There are two reasons for this.  1. It makes the math simple.  2. That is a home that would be very readily and realistically purchased in this area and market.  In other areas the math be be different but the same logic will apply.  

Search Cobb Homes priced from $95-150,000


Income
Depreciation - tax advantages
E.
A.
L.

Part 2:

There are a ton of tax advantages to owning rental real estate.  Since owning rental homes is a business the the IRS allows you to depreciate the value of the investment and take a tax deduction.  You claim the depreciation whether the home goes up or down in value! The house can be depreciated but not the land underneath it.  In our $100,000 example if we assume the land is worth $20,000 that leaves $80,000 on the house.  Depreciate that over 27.5 years and it gives you @ $2900 deduction.

But that's not all!  If you have a mortgage the interest can be deducted.  Repairs costs are deductible in the same year you make the repairs but improvements are depreciated over time.  So repairing a toilet is deductible 100% this year.  A new roof is depreciated over time.  Either way its a good deal for the landlord.  Expenses traveling to visit the property and management costs are also deductible.  

Do you have a self directed retirement plan?  Many plans allow you to own real estate inside of you plan!!!!!  Again, that may not be for everybody but it can be some serious tax advantages.

Consult your CPA or tax adviser for more exact figures but rest assured that the IRS rules rules on your side when you own rental homes!


If you missed it Here is the link to Part 1:  

Rental Homes- I.D.E.A.L. Investment?

*****

 

 


Bob Southard
Broker - Owner  Atlas Realty Service LLC #75911

O:678-439-SOLD(7653)

CALL ME DIRECT: 770-656-9134

Buy a home, Sell a home, in Powder Springs, Marietta, Kennesaw, Acworth, Smyrna, Dallas, Hiram,and Cobb, Paulding, Douglas, North Fulton, South Cherokee, County, Ga. Call me for all of your real estate needs.

Visit my website

www.AgentBobSells.com

 

bob@agentbobsells.com

Call me for all of your Real Estate needs

678-439-7653

Copyright © 2008,2009,2010,2011,2012,2013,2014,2015,2016,2017,2018 By Bob Southard, All Rights Reserved

 

Follow Bob on Twitter , FaceBook, and LinkedIn

 

Agents! $19.95 for 800 capture,fax,virtual tours,showing feedback,more!

 

Comment balloon 0 commentsBob Southard • December 12 2011 10:45AM
Are Rental Homes an I. D. E. A. L. Investment? PT. 2
share
Are Rental Homes an I. D. E. A. L. Investment? There are a lot of investment options available for us today. Stocks, bonds, mutual funds, gold, silver, annuities, etc can all be a part of a solid retirement plan. Some people may claim that I am… more
Rental Homes- I. D. E. A. L. Investment?
share
Are Rental Homes an I. D. E. A. L. Investment? There are a lot of investment options available for us today. Stocks, bonds, mutual funds, gold, silver, annuities, etc can all be a part of a solid retirement plan. Some people may claim that I am… more
Larry Munson- THE voice of the Georgia Bulldogs
share
Larry Munson Tribute videos Last night the Georgia Bulldog nation lost their greatest cheerleader and one of the great sportscasters of all time. For 41 great years Larry Munson was THE voice of… more
So what was he supposed to say?
share
Interesting take from RealFeminist. com. It seems that $35, 000 is actually the textbook amount given to avoid a nuisance lawsuit with little or no merits. http://www. realfeminist. com/2011/11/03/sexual… more
Top 10 Reasons Not to List Your Home Until the Tenants Are Gone!
share
Do you have a tenant occupied home that you are thinking of selling? Here is a great post that I just found. Keep in mind these are only the authors top ten reasons to wait until the tenants are gone. There are others. Top 10 Reasons Not to… more
Oceans and Autos at the Ga Aquarium 2011
share
Georgia Aquarium, Oceans and Autos Car Show 2011 After attending this show last year there was just no way I would miss it this year! On display along with the whale sharks,… more
999 plan Q&A
share
Questions about 999? Herman Cain and his 9-9-9 plan are at the top of the polls. Whether you love, hate, or have no idea about 999 then this should be a good place to get more information. 2hr Q&A Sunday from 8-10am E… more
Hidden taxes or 9-9-9??
share
Hidden taxes or 9-9-9?? Many of you have probably seen this in an email forward or on the Internet. Maybe just a little sarcastic but the ideas expressed ring so true. .. more
Cobb County, Ga, homes $3500down, @$750 per month
share
Cobb County Ga. $3500 Down @$750 per month! It almost sounds too good to be true but it is real! As a matter of fact its not just one house. At todays super low interest rates the… more
Powder Springs Ga, West Cobb, 5/3. 5, pool
share
Powder Springs, West Cobb 5 bedrooms, 3. 5 baths $180, 000 and only $100 down! Great 5BR/2. 5BA (plus a bonus room) in Holland Springs! Spacious kitchen with&… more
Hollywood comes to Powder Springs Ga.!
share
Hollywood comes to Powder Springs Ga.! For those of you who might not know it, the state of Georgia has a very large and robust film industry. Outside of New York and California it is one of… more
Current tax code or 9-9-9
share
A comparison The current Tax code vs. 9-9-9 Maybe I am a little to simple minded but I am pretty sure even I can figure… more
Meet Herman Cain- A bio and more
share
Meet Herman Cain (a good bit of the bio was from an email forwarded to me. I have cleaned it up and added some extra info) Herman Cain is running for president. He's… more
Acworth, Brick Front, 3/2. 5 $135, 000 only $100 down!
share
Acworth 3 bedrooms, 2. 5 baths $135, 000 and only $100 down!! **** … more
Who Does That Agent Represent?
share
Great post on Buyer agency. Here in Ga. agents are PROHIBITED from representing a buyer unless there is a buyers agency agreement. So if a buyer does not have a buyers agreement with the agent they are working with then by law, that… more
Federal spending - simplified
share
So what's 8 zero's among friends… take the zeros off the federal budget and look at like a household. With the recent budget battles in Washington and more budget battles on the… more
Wow! I met a salesman that I actually like…
share
I hate (most) car salesman… But not this one! Barbara and I love Taco Mac Restaurants, so we were thrilled when we got an email to take a test drive of a new Buick or GMC… more
1965 "Mercer" Cobra
share
1965 "Mercer" Cobra CSX 2451 From the time before I was born to about age 20 or so my dad had one of the finest car collections anywhere in the country… more
Newsflash… I AGREE WITH OBAMA!
share
NEWSFLASH.. I AGREE WITH OBAMA!!! Well I agree with candidate Obama… A president that racks up $4trillion in additional debt, financing our future witha credit card from the Bank… more
Marietta Ga, 30067, East Cobb Homes for sale
share
Marietta Ga. Zip Code 30067 Homes for sale, East Cobb * * Search all homes for sale in Marietta Ga. zip code 30067. This is the only home… more