If you're frustrated with other types of investments, consider buying Sacramento area investment real estate.
The list below of Sacramento, CA investment real estate includes multi-unit investment properties in various price ranges. There are color pictures, descriptions, asking prices, and maps.
Sacramento, CA area investment real estate offers advantages to investments in other areas. The asking prices are lower and rents may be high enough to cover not only the costs of running the property but make a profit as well.
There are two ways to look at investing in real estate, one is to buy, fix up the property, increase the rents and sell quickly for a profit. This strategy involves quite a bit of risk since in just a few weeks the marketplace could go from great demand for investment real estate to a cool interest in these properties.
Traditionally, real estate has been a long term investment and in the long run, buying and holding properties for the income they produce is a tried and true winner. You might look at real estate similar to how you play the board game of Monopoly. In that game, real estate did not necessarily increase in value. You made your money on the rents the property produced. Similarly in the real world, if you check with your tax adviser or accountant, run the numbers and calculate what your true rate of return will be on the money you invest, you may find properties in Sacramento, El Dorado or Placer Counties that may deliver higher profits and perhaps more steady profits than other types of investments.
Now is the time to invest in real estate since mortgage rates are very low and the numbers make more sense. For a very good portion of my career, real estate had negative income streams, that is, you had to put money out of your pocket every month to keep the property afloat financially. This was offset by tax savings and eventually the rents caught up with the costs of ownership.
Real estate investments offer tax advantages including write offs, depreciation, appreciation and more. Check with your tax adviser for more information. Ask your tax adviser about how you can sell your investment property and defer your taxes to a future time using a 1031 tax-deferred exchange. This way of selling investment real estate is a real bonus to you when creating wealth compared to other investments which are fully taxed at the time of sale.
The most successful real estate investment strategy I have witnessed in our decades in real estate is to buy and hold. In this strategy, you purchase an investment property, make extra payments toward principal until the property is either paid off or has a debt to value ratio of 50%. That is, there's 50% equity and 50% debt. At that level, the property will easily carry itself financially. Once that occurs it's time to buy another property and use the same strategy again. Over your lifetime if you can accumulate 5-10 rental properties owned free and clear of any debt, you probably will no longer need to worry about your income or wealth. Even if times get tough, you can use one of your properties as collateral to borrow tax-free money for your needs. Consult with a tax adviser, a money manager and your real estate broker before investing to make sure this is right for you.
For more information on investing in real estate, contact REALTOR(r) (00661096) David Jurewicz of RE/MAX Gold today at 916.682.6454.
P.S. Do you want to sell or 1031 exchange your investment property? Call 916.682.6454 right now.
Coleen and David Jurewicz | 916.682.6454
Lic 00661096 00826558 - RE/MAX Gold, Elk Grove, CA 95758
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