In many local cities renters outnumber homeowners. With today's challenging economy, many people now rent or lease homes. Many young people are delaying marriage and home ownership until later in life than previously and rent in the interim. Some never want to own a home. Empty nesters often choose to rent because they no longer want the responsibility of owning a home. Those who are saving to buy a home must rent in the meantime.
Low interest rates or returns on investments have convinced growing numbers of investors to invest in rental homes or apartments to increase their income, return on investment and to take advantage of depreciation allowances which can shelter the property's income and also other income of the landlord. The 1031 IRC Tax Deferred Exchange provision of the tax code continues to allow investors to defer paying ANY income tax on the sale of properties held over 1 year as long as they exchange their property for another like use property for their ENTIRE LIVES. Like kind to the IRS means used for the same purpose. For example as long as you hold the property as an investment you could exchange a residential rental for a commercial property, raw land, or even an orchard. You can even do an exchange into a property such as a house and later decide to live in it as your residence.
If you are considering investing for the first time or expanding your portfolio Jim Mitchell, broker, welcomes the opportunity to act as your buyer's broker or buyer's agent to help find and negotiate a great deal on the right property for you. Jim Mitchell and BlackHorseRealty.biz have access to every property for sale in Southern California and beyond. As YOUR broker Jim Mitchell will use software which will calculate the cash flow and return on investment using your assumptions for income and expenses including a 5 year projection BEFORE you buy. See the attached sample analysis.
There is a perfect storm of opportunity for landlords today. Low prices, record breaking low interest rates, low vacancy rates, steady rental demand and a continued attraction to the fantastic beach and coastal area of Los Angeles County. You can even use a self directed IRA to buy an investment property. And if you lack the down payment to buy now and have sufficient equity in your home I represent an investor who will give you up to 12.5% of the value of your home WITHOUT any payments as long as you occupy your home!
Call Jim Mitchell and BlackHorseRealty now for a free no obligation consultation to see if we want to work together to find the right investment for you. And, if you are concerned that you don't want the hassle of dealing with tenants or property management I will happily do it for you.