These last couple of years have been tough. What with real estate investment financing the way it is and all. Seems the majority of the investors that are still moving in the market, with me at least, are looking more at cash flow than long term growth. Cash flow is good. Cash flow may be king. But it’s certainly not the only benefit of owning and operating rental property in the Kansas City area.
There are 4 benefits when owning investment property.
- Cash Flow Before Taxes
- Principal Reduction
- Tax Benefits/Savings
Appreciation? What? Am I kidding you?
Listen, the topic of appreciation is a whole other post. A rather lengthy one at that. But remember in the late ’90s when people spoke of the “new economy” and how it would never crash? Well, this too shall pass. And when the depreciation and the flat growth turns around (1 year? 10 years? 100?) we will once again have appreciation.
Last week we discussed what NOI (Net Operating Income) was and how it influenced many things about your investment property. Over the coming days we’ll discuss the 4 Benefits in more detail. But it’s not like there isn’t plenty to read already. This is my 33rd post regarding the 4 Benefits of real estate investing. You can just go to the Categories section of this blog to look up the other 32 postings I’ve done over the years. Or you can just click here: The 4 Benefits of Real Estate Investing.