Here Are Our Top Reasons For Buying Real Estate Income Property
- Steady Income from stable businesses.
- Increased rents over time.
- Future appreciation if location and building are researched properly.
- Depreciation and write offs against the income collected.
- Possible 1031 trade to delay a capital gains tax based on a possible gain.
- The building if selected wisely may be used for a variety of uses that will assure future income.
- When purchasing a location make sure either the area is very stable or has a high degree of potential growth coming in its direction.
- Make sure your tenants are not overpaying for the current rent inflating your purchase price from day one.
- Watch out for paying too high of a price per square foot for the replacement cost of the building.
- Make sure your tenants are financially sound and their business is not in danger of going out of business.
- Watch out for possible future road changes and ingress and egress changes.