Fix and flip, rehabbing the property and wholesaling real estate are lucrative short-term investments. For long-term benefits, you may consider owning rental property. Hire a CPA to help you determine the right entity structures for you.
Rental property is an easy way to earn cash from a depreciating property even with maintenance costs. It generates a constant flow of cash that is tax advantaged until the time you own the property.
Investing in rental property allows you to earn a good amount of money without incurring tax liabilities. You can also buy a property, fix it and sell it at an attractive price while incurring a much lesser tax liability. Another way to reduce your taxes is opting for 1031 exchange, which allows you to move your capital gains into a new property.
The real estate arena is highly competitive but following these tips will surely help you make profitable real estate investments.
Zoe Lawford studied marketing management and currently works as an online marketing associate for Blossom Wealth Management. She has been involved in a lot of research in the areas of wealth and investment planning and likes to share her experiences on various platforms. Email her at [email protected] or visit Blossom Wealth Management if you’d like to learn about wealth management.