How to Find a Property Manager
As a property investor, you may start by managing your rentals personally, especially if you own a small portfolio of residential rentals. It might not be too taxing to handle the rent collections, identification and qualification of tenants, and management of repairs and maintenance. Personal involvement is also an excellent method of developing your understanding of the nuts and bolts of the business as you add to your holdings and refine your strategy. However, as you expand your operations, you will eventually reach a point where you can’t oversee the details yourself or simply choose not to. If you invest in other sectors, like industrial, retail, and office buildings, that moment will likely come sooner than later.
What Is IRR And How Do You Calculate It?
Investors use various tools to evaluate potential investment opportunities. One of the methods is the internal rate of return or IRR. IRR is useful for comparing different options, especially if they have distinct cash flow patterns and time horizons. In general, a higher IRR anticipates a higher anticipated return.
Can You Claim a Section 179 Deduction on Rental Property?
Owning a rental property can be a lucrative business. One of the reasons why many decide to become landlords is the tax benefits. In a recent change to the tax code, the IRS changed some of the rules that apply to those who claim the Section 179 expense deduction.
What Assets Get a Step-Up in Basis at Death?
Valuing a person’s assets when they pass away is a complex issue, especially if they have held the assets for a long time. During probate, the question becomes what the appreciated or depreciated value of the asset is to dispose of them. The step-up basis tax provision is important for estate planning and inheritance matters.
How to Report the Sale of Rental Property
Correctly reporting the sale of rental property to the IRS is crucial since doing it wrong can result in paying the wrong amount or even having a penalty assessed, and no one wants to do that. Of course, planning for the transaction before executing it is even better than determining the correct reporting after the fact.
Is the 1% Rule of Real Estate Investing Realistic?
The 1% rule is a guideline that real estate investors use to choose viable investment options for their portfolios. Although the rule has helped many investors make wise decisions regarding their investment properties, the current real estate market may make following the 1% rule unrealistic.
