HOUSINGNEWS REPORT
MY TAKE
An Attorney’s Guide to Real Estate Investing
BY KEVIN KIM, ESQ. CORPORATE & SECURITIES PARTNER, GERACI, LLP
Owning Rental Property Rental properties have been around since the nation’s founding and have been a popular wealth generation tool for generations. With a rental property, the owner is usually responsible for paying the mortgage, taxes, insurance, and maintenance costs for the property. Typically, the investor will purchase a rental property with the hope that the amount of rent received will cover most, if not all, of the costs associated with owning the property.
income to provide much profit until after the mortgage is paid off. Once the mortgage is paid off, however, most of the rent collected will become profit. This result is known as a “cash- flowing” property. There is another benefit to owning rental property: appreciation. Owners receive all of the financial benefit that comes with the property’s appreciation in value, including any improvements to the property. On top of cash flow, this is the most significant benefit of owning a rental property.
Real estate investments have become an attractive alternative to investing in traditional investments such as stocks, bonds and mutual funds. In fact, it has become a significant method to build wealth for generations. While purchasing a home is a worthwhile investment, adding real estate investments to a portfolio can add a powerful hedge and strong foundation as compared to the volatile stock market. In this article, we will explore several of the opportunities that real estate investment provides, along with the pitfalls to expect while investing.
This strategy requires patience, as there may not be enough in rental
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JULY 2018 | ATTOM DATA SOLUTIONS
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