US real estate equity builder Kansas City (usreeb) specialize in residential, commercial, and rural property sales as well as property management services

1. usreeb

2.  Investing in residential real estate comes with
numerous tax advantages. You can factor in
deductions such as property depreciation, mortgage
interest, the cost of repairs/maintenance/services,
travel costs, meals, and even defer capital gains tax
through the use of a 1031 Exchange.

3.  Bottom line: You select the market to buy in. You
only buy a property if you’re happy with the
acquisition price. You agree on a rehab budget. You
hire a property manager. You and your property
manager select tenants. You decide to hold or sell.

4.  Buy and Hold residential investing is beautiful once
your property is performing. You mortgage payment
goes out, rental income comes in, and hopefully it
becomes clockwork on the 1st of every month. It’s
like getting a monthly paycheck without having to
work in a cubicle! Isn’t that what you want?

5.  Not so fast though...related to the previous point I
made, this may seem obvious, but without a tenant
you literally have no cash flow. What does that
mean? Tenant class is extremely important. Picking
the best and most responsible tenant possible
(easier said than done) is arguably the most
important factor when investing in residential real
estate.

6.  I’ve called this the “icing on the cake” in a previous
post I wrote about ROI, and if you’re a buy and hold
investor with assets in a cash flowing market, it truly
is.

7.  The amazing thing that some new investors fail to
realize when looking at ROI, is the fact that when
your property is occupied and cash flowing, your
tenant is paying down your principal, interest, taxes,
and insurance for you. It’s great! So, even if your
property “breaks even” one month due to
unexpected repairs or maintenance, you still have
someone else paying a majority of your expenses.
How is that not amazing?

8.  Pay all cash or get a traditional mortgage? You may
think those are the only two options available for
buying residential real estate. Luckily, there is a
diverse range of additional financing options. Seller
financing, getting a loan from a self-directed IRA,
private loans, master lease with option to buy …
these are just a few creative ways to finance your
next investment.