Pros of Investing in Tri City, WA Real Estate

Pros of Investing in Tri City, WA Real Estate
February 26 10:42 2019 Print This Article

If you have been exploring ways to make your money work for you, then real estate investment has shown up on your list of options. What are the pros of investing in Tri Cities real estate? Here are three.

1. Somebody Else Pays Your Mortgage

If you’re starting out as an investor, you’re probably renting out a former home or have taken out a loan to purchase a distressed property. This means that you are likely to have two mortgages that you are paying down. But when you have a tenant paying rent for one of your properties, that money can go toward paying off your first mortgage. This puts you on the fast track to owning multiple properties while working less!

2. You Get Tax Perks

Rental profits are often considered long-term capital gains and aren’t subject to the higher self-employment tax rates. In addition, if your earned income is between $38,000-$425,800, any rental income will be taxed at a fixed 15% rate. You can also make these valuable deductions on your tax return:

  • Mortgage Interest
  • Property tax
  • Operating Expenses
  • Depreciation
  • Repairs

3. You Can Earn More Over Time

Rent has generally increased over time due to the increasing costs of living and higher demand for rentals. Combine this with your property’s appreciation, and you get the perfect conditions for increased revenue over the years. Therefore, in most situations, your profits increase because the gap between what you earn and what you owe widens.

To find some great rental investments in the Tri Cities area, contact us at Retter & Company Sotheby’s International Realty.

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Dominic Ortiz
Dominic Ortiz

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