Investing in real estate can be an intimidating endeavor, but if done right, it can be a great business move. Here is why investing in real estate is a good idea.

Real estate investments generate passive income!

When purchasing real estate and leasing the space to a tenant, one would receive ongoing income every time the tenant or tenants pay rent. We call it “Passive Income” because it is income that is generated without the earner being actively involved. Mistake not, dear reader– while most of the income is generated passively, the landlord still has work to do! When one accepts the responsibility of landlord, there are still occasional repairs and regular maintenance that are necessary to keep the space aesthetically pleasing and in good working order. Pro-tip: Happy tenants pay on time!

Real estate investments appreciate in value!

Property values in Austin are climbing every day thanks to various factors– one of those factors is the improvement of neighboring properties. Shop around and do some research– is the neighborhood pretty new, without much room for aesthetic improvement? Are there lots of houses that appear to be under renovation? Due diligence and careful market analysis are key aspects of investing in real estate, and should not be overlooked!

Real estate investments can provide tax benefits!

Real estate investments depreciate– “wear and tear” effect every property, and tax law is written to account for such depreciation. For instance, inclement weather takes its toll on even the hardiest of structures. Tenants are sometimes disrespectful of the assets. Every day that a structure stands upright, it fights elements from all sides, even gravity! This “fighting of the elements” contributes to depreciation. Luckily, this reduction in value is tax deductible.

Real estate investments can provide financial freedom!

Gone are the days when the majority of people are holding an IRA or 401K. Our economic climate is ever-changing, and investing in rental properties and earning passive income on these assets is a great way to ensure one’s future without the traditionally low return that conventional investment alternatives provide. We recommend engaging a financial planner with real estate experience to guide anyone interested in self-managed retirement funds. Give our friend Isaiah Vasquez at Relief Tax and Retirement Advisors a call at 512-452-4242 to get started! (Psst, use the codeword “Loved Homes” for a free consultation! Time slots are limited.)

Interested in getting started but unsure how to get off the ground? See the link below for some insight!

Texas Quest Capital provides creative funding solutions for real estate investors! He’s a personal friend of ours– mention Loved Homes for an opportunity to roll all of your points to the back side of the deal. (If that makes zero sense to you, you DEFINITELY need to talk to Scott!)

That’s all for now, folks! Tune in next week, same bat time, same bat channel.

–Brie