Investing in Rental Property

Picking out a good investment opportunity can be difficult. Some people enjoy handing their money over to an investment professional to help them make the decisions. Others like the idea of having a wide variety of investment opportunities available to help them out. Still others like to invest in homes and other property and make a nice paycheck with renting these properties out. No matter what kind of investment opportunity you choose, you need to make sure you have the right professionals behind you. The professionals at Falisha Griffin have the experience to help you out with all of your investment needs, including those for rental properties.

Why Should I Invest in Rental  Properties?

While there are a lot of great investment opportunities you can go with, rental properties are often one of the best. Rental property investment is seen as one of the safest and quickest investments that you can make and they offer some great benefits such as:

• Leverage—with leverage, you have the ability to use a small down payment or amount of cash to work on the bigger investment. You won’t have to pay for the whole property upfront, but can just put down a bit of money and then work on the payments as you go. This is one of the only investment opportunities that allows this.
• Security—not only do you get the benefit of just putting down a small amount of money, but you will also enjoy the fact that this is one of the safest investments you can choose. You must pick out properties in good locations and price yourself right, but renting out property, especially if you have a large portfolio of properties, can be a great way to make some money.
• Tax benefits—there are also some tax benefits that you can enjoy with property investments. You will be able to enjoy incentives and tax breaks for investing in rental properties. If done properly, it is even possible to use your depreciation to purchase a newer and bigger property without paying more taxes. The professionals at Falisha Griffin will be able to help explain your tax benefits and file all your taxes to get the most benefits with your rental properties.
• Directly actionable—most of the investment opportunities on the market ask you to put in the money and then just wait and see what happens. When it comes to rental properties, you will be able to control what is going on. You can decide how much the property is worth, how to make it worth more, and the tenants that you rent out to.

Different Options for your  Investment

There are different types of property you can choose to invest in when you think about rental properties. Each of these is going to have benefits and negatives to you and you may need to bring in a tax professional to help you determine which one is the best for you. Some of the options of rental property investments that you can make with the help of our professionals at Falisha Griffin include:

• Single family homes—this is one of the most popular. You will purchase this kind of property before renting out to an individual or family. These are easy to finance and most of the renters are willing to be long term. They like the idea of having a home, but may not be able afford a home on their home. The downside is if the family moves out, you lose out on the income.
• Small multifamily properties—this will have two to four different units that you can rent out. They work much the same as a single family home, but you are able to rent out to many people rather than to just one family at a time. If someone moves out, you won’t lose all of your income at once.
• Large multifamily—these are nice if you are looking to make a lot of money out of this process, but can be hard to maintain and fill up. You will also need to worry about getting a commercial loan, this means higher interest rates and down payments. If you are successful, you will be able to make some good money with this process, but you do have to be careful to not waste it either.

Doing Your Taxes

When you get into rental properties, you need to make sure you are taking care of your taxes. The government sees the investment income from these a bit differently than from your regular income, but you will still need to report the income. This is the part that a lot of investors have trouble with. They may do well with purchasing properties or dealing with their renters, but once the tax season comes up, it can be difficult to figure out what you need. Finding a certified accountant or a tax professional to help can be a great idea. If you kept good receipts throughout the year, they can sit down with you and get this all figured out in no time.

Figuring out your taxes each year can be a challenge. There are many factors to take into account and when your situation changes, you may be unsure of what you need to report and how to fill out all the forms. When you need help with your tax filing, make sure to contact Falisha Griffin at in York, PA. Falisha Griffin is able to assist with all your tax filing needs to ensure you get everything sent in properly without any issues.