Landlords of Ann Arbor city limits have significant additional duties over federal and state statues. You may wish to visit this site:
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
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:
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
There are a surprising number of locally relevant instructional materials available e.g.:
- Tax Planning, Legal Planning & Property Insurance While Investing in Michigan Real Estate https://www.youtube.com/watch?v=wcbgAsnbKLE
- I tore up all of my 13 credit cards
- I got on a budget
- I took advantage of my company’s profit sharing and 401(k) options
- I purchased rental property
At 40, I was able to purchase my first rental property in Pennsylvania for $8,000. With my wife we paid cash for the house. As an old Victorian home split into three apartments it grosses over $1,500 a month. Within a few years, I built our rental income to over $85,000 a year including selling a few properties at a profit.
(oh ya, rental property…. full story)