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Residential Income
Property -- Is it for You?
 Do
you believe that a diversified
portfolio must contain real
estate along with stocks,
bonds, and mutual funds,
etc.? Your tax attorney
or CPA are the only ones
that can help you decide
if owning income producing
property makes sense for
your unique situation.
First you must decide
what your goals are.
Do you want monthly cash
flow, resale of the property
for quick profit; to hold
the property for long term
appreciation or use it for
a tax shelter? The
decision should be a part
of your financial planning
so that you can see the
big picture.
Remember, when you have
rental property, it is a
business. It requires
book keeping, record keeping,
writing ads for prospective
tenants, maintaining the
property, and interacting
with good and bad tenants.
There is the option of having
a property manager look
after those tasks for you
for a fee.
If you and your tax advisor
decide that income property
would benefit you, it is
time to talk to your Real
Estate Agent so that she/he
can begin the process of
finding you the best property
for your financial portfolio.
Just as with other types
of real estate, location,
location, location is
the primary concern.
The property must be located
in areas where people want
to live. Are the schools
good and nearby? Is crime
under control? Is
there easy transportation/travel
into and out of the neighborhood?
Determine what stage of
the cycle the neighborhood
is in at this time.
Is it a new neighborhood,
mature neighborhood, a declining
neighborhood or one that
is being rehabilitated?
Is the timing right?
Ask your Real Estate Agent
to give you the details
of the current market.
She/he can help you make
educated decisions about
the property and timing
by showing you what properties
are selling for and how
fast they are selling (supply
and demand).
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