WHY RENT YOUR PROPERTY
Regardless of how weak or strong the housing market, renting out your property and becoming a landlord can be a very smart financial decision. The tax benefits and long-term wealth creation of owning rental property can be profitable and exceeds selling your home even if rent payments does not match your mortgage payments. Renting out your property has never been easier when you work with Watchtower Property Management.
ADVANTAGES OF RENTING YOUR PROPERTY
Renting your house consistently for more than your mortgage payment plus other expenses, you will grow a profit over time. Annualized tax benefits, real estate appreciation, and refinancing opportunities can make up for any monthly or short term shortfalls. If you eventually sell your property when the market is good, you can create great returns on your investment.
You can use your income property as a vacation rental and rent it out when you are not there. Free vacation home! Ask us about details.
There are numerous tax benefits to owning a rental property. Here are few items that you can write off: all of your expenses, property management’s fees, utilities, repairs, mortgage interest, and property taxes.
What your house will be worth when you sell depends on the mortgage and the housing market. Property owners turned landlords continue to see larger returns and extra cash as rental prices grow.
Avoid Loss in a Down Market
In the event the market in your area takes a turn for the worst and selling your home is not ideal, you can hold on to the property and rent it out until you can actually make a good profit from selling.
Protection Against Inflation
Owning a rental property is a safe investment and an even better asset that can make money during periods of high inflation. It gains value when inflation is high and creates cash flow from renting during any economic period. It’s basically a win-win.
Forced Retirement Plan
Unlike an IRA, SEP, or 401k, a rental property can help you build larger returns in equity and cash flow. Owning a rental property is a commitment that you can benefit from hopefully well into retirement.
Tax-Free Cash Flow
If you leverage your capital, because of depreciation and mortgage interest deductions, your cash flow could be tax-free. A certified tax professional can help you limit taxes on your cash flow and defer taxes on capital gains if you sell your property in the future using a 1031 Exchange.