Deducting Repairs: New IRS Rule Eases Burden for Landlords

Here’s a bit of good news for small landlords: The Internal Revenue Service has introduced a “safe harbor” for deducting repairs to investment properties from ordinary income. Normally, the IRS does not allow you to take a full current-year deduction for anything they consider a renovation or improvement. They only allow you to take a…

Top Real Estate Depreciation Tips

Depreciation is a double-edged sword. It’s a big part of why real estate works so well with leverage as an investment. Taking the depreciation allowance on investment property is a critical part of the attractiveness of real estate investing, from the point of view of the cash-flow investor. But the rules governing depreciation are notoriously…

Do Houses Appreciate in Value?

Although the recent housing bubble and subsequent burst may have jaded some, the vast majority of homeowners and investors (and the real estate agents who sold them those houses) believe that house values appreciate over the long haul. What you’re about to discover may surprise you. And it may also influence your thoughts about homeownership…

10 Things to Consider Before Buying Your First Investment Property

Everyone seems to know it. It’s on TV, it’s in the newspapers, and it’s on the radio: Real estate investing can do wonders for your financial future! However, just because investing in real estate has a great reputation for delivering stellar returns and building great wealth doesn’t mean that all investments are created equal. The…

10 Things to Consider Before Buying Your First Investment Property

Everyone seems to know it. It’s on TV, it’s in the newspapers, and it’s on the radio: Real estate investing can do wonders for your financial future! However, just because investing in real estate has a great reputation for delivering stellar returns and building great wealth doesn’t mean that all investments are created equal. The…

Should I Use My 401(k) for Real Estate Investing?

The stock market’s gone nowhere for years. Interest rates on bonds and mortgages alike are hovering near their record lows. With the more traditional asset classes going nowhere, it’s very tempting to look elsewhere for investment returns. And compared to a few years ago, real estate is on sale. Let’s take a look at some…

Landscaping Your Investment: Thinking Outside the “Box”

As we’ve established in previous editions of the Flippin’ Insider, the best improvements you can make, based on return on investment, tend to be cosmetic. What can you do to make the home better? Some common and cost-effective ideas thrown about include slapping a coat of paint on the exterior, painting or adding shutters, trim,…

An Introduction to ROI – Return on Investment for House Flippers

ROI stands for “return on investment,” and it’s a key concept for any investor to understand. ROI answers the question “how much will I get back per dollar I invest?” It’s usually expressed as a percentage. Example: You own a house. You assess the market value at $100,000, as is. You spend $5,000 in repairs…

Creating a Business Plan – A Guide for House Flippers

The popular sayings abound: “If you fail to plan, you are planning to fail.” “Proper prior planning prevents p***-poor performance.” There are many others – and you can make up your own! That said, too many people go into the real estate investment business without a plan. Buying a house may be the biggest purchase…

The Coming Foreclosure Tsunami: What Does It Mean for Flippers?

Professional observers of the housing market are bracing for a huge wave of foreclosures slated to swamp the housing market – putting tremendous pressure on prices. The upshot will be great danger for some – and great opportunity for others. Here’s how it’s coming to pass, and what it means to flippers. In 2010, the…