RENTAL PROPERTIES
CREATING WEALTH
Maximize Profit and Minimize Taxes with Real Estate Investing
BUILD WEALTH THROUGH RENTAL PROPERTIES.
by Abhi Golhar
ndrew Carnegie is famous in many circles, but one of his quotes stands out: “Ninety percent of all
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MAXIMIZING PROFIT There are two profit components in a rental home investment: • You generate cash flow from rents over expenses. • T he property appreciates in value over time, so you make a profit when you sell. You must understand the local real estate market to know the market value of a property, the rent you can charge, and your costs of doing business. Expenses are almost all deductible for tax purposes.
millionaires become so through owning real estate.” Although there are several real estate investment strategies, most novice investors start with a rental home, often their own or the other half of their duplex. Barriers to entry are not high, and the ultimate rewards can be amazing. Attractive profit margins is what attracts most investors. Over the decades, Congress and the IRS have instituted tax advantages that leverage those profits.
82 | think realty magazine :: july – august 2022
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