Lots of Investors are now a days buying Single Family Homes or Apartment Duplexes, to renovate them to rent them out to create Monthly Income with Low taxes.
I have a few Properties in mind to do the same.
What are your thoughts on this?
A great, great idea. There is so much more that goes along with owning rental properties besides the rent payments. There is massive write offs for repair materials, labour costs (including your own) personal home space and areas used for maintenance/storage. If you learn to do the repairs yourself, then your labour can be written off. Just make sure you find an experienced accountant. But remember that a property that is clean, new looking and has quality built in rents easier than other older units and generally gets 25% more rent!! You are now a real estate investor and you need to always be aware of cost v. benefit: always being careful that any upgrades will increase the inherent value of the property.
It is a great idea as long as you can rent it for like twice the mortgage amount on the property. Because you have to factor in the cost of operation of the rental property. So if your mortgage is like $5000 then your total gross rent needs to be like $10000 per month
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