Real Estate

Principles

  • Real Estate is the best investment since land will always go up due to limited supply and increasing demand.
  • Depreciation on real estate is the best  expense tax write off (it is non-cash).
  • You should own properties of under 200000 and rent them out to tenants. You should rent to live in properties over 200000. This is because the rent to value of the home ratio decreases for more expensive homes.
  • TIC (Tenant-in-common) where you own a % of the apartment is the least expensive option.
  • 2.Have the selling agent represent you as the buying agent to get a lower price.
  • 3.Use traditional mortgages, not variable or re-payment mortgages.
  • 4.Buy on hill for earthquakes and air quality.
  • 5.Zillow.com is a good website to start
  • 6.Find out what the comparable units in the area sold for.
  • 7.Google landlords before you sign with them to see if they keep your security deposit or something fishy of the like.
  • Should break even from cash flow perspective with 50% occupancy. 2:1 ratio.
  • Rent where you live, and own what you can rent. 
  • Income real estate is the best investment:
    • Make money from tenants each month,
    • Deprecation tax write off
    • Decreased value in debt due to inflation
    • Potential appreciation.

Software / Services

    • Can automate the real estate process by hiring management services and brokers. Don’t even need to see the place in person.

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