The Realized Team’s Picks
Is Painting a Capital Improvement?
Repainting a rental property does more than boost its curb appeal.
What Is the Rule of 69 Percent In Real Estate Investing?
Investors love to use rules to help them predict outcomes. For example, there is a one-percent rule (a one-percent increase in interest rates equates to ten percent less you can borrow to keep the same payment), a two-percent rule (the percentage of a home’s cost that you should be asking for in monthly rent), and more. Some of these rules can help estimate potential results, but others are outdated or possibly never really held much value.
What Is the 2% Rule in Real Estate Investing?
Unlike some other famous maxims in real estate investing (like the seventy percent rule, for example), the two percent rule is widely discredited in most U.S. metropolitan areas. The rule holds that the rental amount should equal two percent of the property's purchase price. By that calculation, if you purchase a house for $100,000, the monthly rent should be $2,000. That seems unrealistic at first glance and becomes even less likely the deeper you dig in.
Can You Use Money From a 1031 Exchange To Pay Off a Mortgage?
Real estate investors can defer capital gains on the sale of an investment property by purchasing a replacement asset as part of a 1031 exchange.
Are Gift Funds Allowed on an Investment Property Purchase?
You have received a large cash gift, and you plan to buy a real estate investment. However, can gift funds be used for an investment property purchase?
Disadvantages of Delaware Statutory Trust (DST) 1031 Exchange Replacement Properties
Delaware Statutory Trusts (DSTs) are an increasingly popular investment vehicle for those seeking attractive passive investment opportunities. A sponsor creates a DST using Delaware’s unique trust regulations to design a pre-packaged offering for investors. DSTs often focus on specific real estate sectors and include assets that a typical investor could not purchase individually.
What Is The Rate Of Return Of A Delaware Statutory Trust?
Unlike a direct real estate investment, investing in a DST is less complicated. There isn’t any rehab that investors must spend money on. There are no closing costs. The cost-basis is easy to figure out. All of that helps simplify the Delaware Statutory Trust rate of return (RoR) calculation. In this article, we’ll dig into what you need to know about calculating the RoR on a DST.
Are HOA Fees Tax Deductible?
If you’re looking at properties, you may notice some houses and condos for sale have HOA fees in their listings. You might be wondering if HOA fees are mandatory, how often they need to be paid, what the fees cover, and if you can deduct HOA fees from your taxes. HOA payments are an added cost to consider when making your monthly housing budget.
Ways to Offset Capital Gains
Profiting from the sale of an investment, such as rental property, land, or stock shares, will generate a capital gains tax liability.
Can I Deduct Supplemental Property Tax?
Whether you own your own home (and use it as a primary residence) or own investment properties, you understand one thing. Namely, state and local property taxes can generally be deducted from your federal income taxes. While the Tax Cuts and Jobs Act of 2017 caps those deductions at $10,000 (or $5,000 if you are married and filing separately), the deductions can be used to help offset your income. The result is a potentially lower tax burden.
