How to make money in real estate? That’s a very popular question and has tons of answers! You can literally make money with lots of different options, and each option has multiple ways to execute them. On top of that, you can apply each of those options to different areas of real estate like residential, commercial, industrial, etc. I could go on for a while with these but I won’t. Soooo see ya next week!?
NAAA! I’m just kidding…had ya for a minute though didn’t I? You thought I was going to take my dozens of blog dollars and disappear for ever didn’t you? Actually, I’m just going to touch on a few popular options and a few lesser known options on a higher level. In a future post I’ll break each of them down in greater detail, but for now we’re just going to dip our toes in the water on how to make money in real estate. Read more
Downsides of being a landlord
One of the questions I get asked most often about being a landlord is What’s the downsides of being a landlord? While there are numerous upsides; 4 ways to make lots of money for starters. There are a few downsides as well. I’m actually only going to talk about one downside in this article as it recently had a perfect ending to it. This downside is terrible tenants.
I know there’s lots of ways to screen tenants and you could weed out the majority of potential crazies but occasionally you might take a chance on a young person with no references and get burnt.
How bad was this person?
Good question! First let me give a little bit of background on how my duplex is run. One of the major selling points for this building for me was the fact that it’s in my hometown, and my father owns the identical adjacent property. They were built together when the original owners built them. He’s owned his unit for almost a decade and has had no issues. He also helps to manage the duplex for me, I’ll post all of the ads and answer all of the emails but the in-person viewings are done by him and the screening of tenants.
Now on to the tenant…
9 Great tax deductions for income properties
Tax season is just about over for everyone and I was able to get a pretty nice return thanks to my tax deductions for income properties. You may know by now that I have two income properties. If not, go and read about my first one which became an income property by accident. When you’re done there you can check out my search for a purpose bought income property. Go ahead! I’ll wait right here!
Why so many income properties?
Well besides the fact they can make you tons money in four different ways, any accountant (always helps to check with an accountant if you’re going this route, they can save you lots of money!) could tell you all about the tax deductions for income properties. Read more
So you want to make money with income properties? Here’s 4 ways to do it.
So you want to start investing in income properties now? Great choice! Just like investing in the markets, income properties are all about one thing; time in the market. The best time for you to buy is now and the best time for you to sell is a long time away.
Real estate is similar to many investments in the fact that you cannot time the market. Analysts and the general public often get this wrong. Usually when someone does get it right, it was by pure luck and they’ll never be able to duplicate that performance again. In Canada, for example people have been talking about the bubble bursting in Vancouver and Toronto for as long as I can remember but from January 2015 to January 2016 they’ve still increased by 30.9% and 14.2% respectively.
It’s been any day now for those bubbles to burst for over a decade and they’re still booming. This brings me to the first way to make money with income properties.
As you may have noticed in my Q1 2015 Net worth summary, I had a lot of cash sitting around not working for me. With the Alberta housing market looking like it was on a downward spiral, I didn’t want to buy there just yet. So I decided to look into a rental property.
In February 2015 I was looking at mls.ca like I normally do. I have the tendency to surf MLS at least once a month looking at the prices of homes in all of the areas I’ve lived in. It’s only 4 different areas so it doesn’t take that much time. I don’t know why exactly I do this, mostly just from to feed my interest in homes I think.
This one particular time I was looking at places in Cape Breton, Nova Scotia. It’s where I’m from and where a lot of friends and family still live. If there were opportunities like there are in Alberta, I would think about moving back, but until that time, it doesn’t fit into my financial plans. Or at least that’s what I thought.