Real Estate taxed for Obama Care. Did you know your vote matters?
The Obama Movie 2016: http://vimeo.com/52265686
Los Angeles California has some really attractive deals in residential and multifamily properties. Assets that are Single Family or Income Producing properties are pricey on the Westside but the growth and safety are worth it. Santa Monica, Mar Vista, Marina Del Rey, Culver City and, of course, Venice. Keep in mind when it comes to investing in Real Estate... Yesterday would be better - Today will do - Tomorrow is too late!
... That is the question. You and I both know you can not expect real estate to always be going up. but why expect it to always be going down once it turns?
An extended family member from out of town asked a rental question. I'll share it here.
Have a question for you. Is it better to rent to someone you know who would take excellent care of your home and take a little bit of a loss on a monthly basis OR make a couple hundred extra a month with someone you don't know?
I'm leaning toward the little bit of a loss situation but want your professional opionion!
You have to go by the seat of your pants on these situations.
In calling on the references (more than one!) the most important question I can ask of the previous landlords is "Would you rent to them again?"
The amount of damage and down time for repairs is really heavy if you select poorly. So past landlords are key.
You have one unit. One heavily invested home. If you are renting in the new town... Is the rent received (old place) higher than the rent paid (new place)? If so, it is a good thing.
My 2 cents.*
* Price charged is Zero. My liability is the same.
No legal advice given here. Emotional justifications and encouragement offered freely and with my best of intentions to make you feel better about a hard and difficult decision.
OKay if you are coming to the area to search for a place you need a short term place....
I think this is the best Holiday Card for this season.
Section 1031 of the Internal Revenue Code has been called the single greatest wealth building tool available to real estate investors. If you are unaware how Section 1031 of the IRC can magnify your returns and help you create wealth, review this:
An investor who purchases $100K worth of Microsoft stock in 2000 sells the stock today for $200K. The investor yields a whopping 100% return, correct? Well yes, but don’t forget that when tax time comes around, our Microsoft investor will owe the IRS and State Taxing Authority about $30K. After taxes, the profits from the Microsoft investment plummets from $100K to $70K. Still not a bad return, but after taxes our Microsoft investor now has only a total of $170,000 to reinvest.
Now let’s contrast this with an investor who makes the same returns in the real estate market. A property purchased for $100K, appreciates to $200K. The investor earns the same $100% return. The major difference however, is the investor can elect a 1031 Exchange and defer the capital gains taxes. Doing so leaves the investor with a total of $200K to reinvest.