Benefits of Investing in Real Estate

We cover a ton in this video so we have added some numbers below to help you follow!

Partner Scenario Example

The property value is $200,000

Your capital brought in is $50,000 w/ us  (25% down)

  • Cash-on-Cash Return (paid monthly):

$50k at 6% = $3,000/year = $250/month

  • Appreciation

2% appreciation on $100,000 (your half) = $2,000/year

That is FREE money for owning real estate

  • Equity Paydown (paid by tenants, NOT YOU) 😊

$1,300 per year

  •   Tax Benefits

You get to the benefit of owning $100k of real estate (2x your capital)

Paper Losses:

Depreciate the property value of that 100k

Actual building is valued at $80,000: 80,000/ 27.5 = $2,900/year you get to write off

On that $3,000 a year in profit, you get to write off $2,900 on deprecation alone + write off insurance, interest, taxes, repairs, management, etc.

Any tax loss will carry over to your ordinary income up to $25,000 if you make under $150,000!!

Let’s build something together.