100% Management, Inc.
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Real Estate: Your investment

Adapting your investment in Real Estate?

There are many different ways to make Real Estate investments a profitable experience. As a homeowner, you may have benefited from the tax deductions and exemptions that the federal, state and some local taxing authorities provide. You may have also owned income producing property that provided positive cash flow and other tax benefits. But lets just say you presently find yourself owning a home that is on the market for sale or you have considered selling. Is it really in your best interest to sell?

In many cases selling your home may not be the best option. You may be able to convert your home into an income producer. You could benefit from the positive cash flow while at the same time have the debt service and equity build up on your property paid for by another person.

First, seek the advise of professionals. Be aware that many lending institutions consider rental income when writing loans for the purchase of a new primary dwelling. Speak with your accountant or financial advisor about the financial benefits and hazards you may incur by converting your home. Also, speak to a professional property manager in your area about your homes true rental value, current market conditions and common expenses associated with owning rental property. Once you have all the facts, the correct decision for your needs can be made.

You may find that selling your property is still in your best interest. This does not mean that it should not be used as an income producing property until such time as it sells. You may be in a position which affords you the opportunity to wait for a buyer willing to pay fair market value for your home. For most people, the prospect of maintaining two mortgage obligations is a frightening one.

Does that mean your life should be put on hold until you close a deal? How long do you wait and how much do you lower the price before a qualified buyer who is willing and able to close is found? You just may find that leasing out your current home is the answer. Many people have found that finding a tenant is much easier than finding a buyer. Increasing your equity, with other peoples money, prior to finding a buyer could prove to be a very profitable experience.