Tax advantages of being a landlord – One reason fortunes are made in real estate

Indeed, putting up with unscreened tenants can be a real pain. But offset that by improving real estate markets and favorable tax rules that aren’t available for other types of investments. In fact, favorable tax rules are a big reason why so many fortunes are made in real estate. The other big reason is that leveraging real-estate investments with mortgage debt can greatly multiply the upside potential.

But let’s stick to taxes here. This article is the first of several on the most important tax issues that landlords need to understand.   article

Forget The Single-Family Homes: Buy an Apartment Complex

Here’s a nice article outlining the realities of competing with large investors for homes, vs the economies of scale aquiring a multi-unit or complex. I started my experience with 20-30 unit complexes back in the `70’s and come from a numbers perspective while advising on the day to day challenges and rewards. On to the article:

Before becoming a landlord, add up the costs

One of life’s luxuries is being able to afford a vacation home.

….“Thankfully I was well within the guidelines for debt-to-income ratio and credit score.” The beach condo is a joint investment with his father, Bob, who has bought and managed rental properties for years. They expect to collect as much as $3,500 per week during peak summer season from vacationers, but before Lebda took out the mortgage from a bank in the Lending Tree network, he also calculated anticipated costs, including maintenance, marketing and insurance premiums…


Especially interesting are the comments section