Real estate investing is a way to build wealth, generate passive income, and take advantage of numerous tax benefits. Becoming an investor requires some education about the business, upfront capital, and the ability to use leverage to your advantage. Real estate investing for beginners usually requires $5,000 to get started. How Real Estate Investing Works…
About the Author
Michelle Ivy
Michelle is a licensed real estate broker-owner who specializes in real estate investments. She is also COO of a global investment firm that specializes in infrastructure financing. Prior to joining the Fit Small Business editorial team, Michelle owned a Registered Investment Advisory firm and participated in real estate flip projects as a principal investor. When Michelle isn’t writing or advising she enjoys traveling, pilates, and spending time on the water in Charleston, SC.
Learning How to Invest in Real Estate
Investing successfully in real estate requires thought and careful planning. Learning how to invest in real estate successfully requires understanding the different types of investments available and how they work. We researched the top real estate investing education resources and came up with the best six for would-be investors. 6 Types of Real Estate Investing…
Top 12 Rental Property Tax Deductions & Benefits [+ Free Worksheet]
The IRS allows you to take tax deductions for any legitimate expense related to running a rental property. If you own rentals, you can claim expenses in 12 categories spanning everything from interest, to insurance, repairs, and depreciation. However, you must record them, according to IRS guidelines. To fulfill your tax and bookkeeping needs, it’s…
Home Equity Line of Credit: What It Is & How to Get One
A home equity line of credit (HELOC) is a revolving line of credit collateralized by your home. The maximum limit for a HELOC is based on the amount of equity in your home and typically will not exceed 85% of the home’s value. HELOCs have relatively low interest rates, with current rates starting at 5.25%….
Rental Application Form [+Free Templates]
A rental application form is completed by a prospective tenant who wants to lease a property. It’s used by property owners to screen tenants and decide if they qualify to rent the property. We’ve developed several free rental application templates that you can use for single-family homes, vacation rentals, or apartments. Free Rental Application Template…
How Much Does It Cost to Flip a House? 4 Key Factors to Consider
The cost to flip a house equals the sum of the acquisition cost, repair costs, carrying costs, marketing costs, and sales costs. Costs vary based on where the home is located, property type, and the extent of the renovations needed, but the total cost to flip a house is usually around 10% of the purchase…
Free Month-to-Month Rental Agreement Template
A month-to-month rental agreement outlines the terms of the lease, such as the rental amount and security deposit. It should also include the landlord and tenant responsibilities. While the specific contents of month-to-month rental agreements vary by state, there are three basic rental agreement templates you can use based on property type like single-family, multifamily,…
3 Ways to Flip Houses With No Money Down
There are ways to flip houses with no money but be prepared to bring value in another way like wholesaling property by assigning contracts, building a private investor network, or giving up equity in another residence. Flipping houses with no money requires creativity, sweat equity, and the ability to take on risk. If you have…
Flipping Houses Taxes: Capital Gains vs Ordinary Income
Flipping houses is generally not considered passive investing by the IRS. Tax rules define flipping as “active income,” and profits on flipped houses are treated as ordinary income with tax rates between 10% and 37%, not capital gains with a lower tax rate of 0% to 20%. Taxes on flipping houses will usually include self-employment…
How to Invest in Real Estate: Real Estate Investing 101
Deciding how to invest in real estate means analyzing property types, strategies, potential risk, funding sources, average returns, and timelines. We’ll review the most common ways to invest in real estate, including flipping houses, rental properties, buying vacation rental property, and purchasing commercial real estate. In other words, this is real estate investing 101. 4…
Hard Money Loan Rates, Points, & Costs
Hard money loan rates can range from 7.5% to 15% with three- to 36-month terms. Points to close on hard money loans typically fall between 2% and 10% of the loan amount. Pricing is primarily based on risk, equity, and borrower experience (if a fix-and-flip). Unlike conventional underwriting, hard money lenders develop their own guidelines….
How to Rent Out Your Home in 5 Steps
Renting out your home allows you to generate income while maintaining ownership of a property that you can use when it’s vacant. This guide shows you how to rent out your home effectively, following steps to determine rent, find tenants, properly structure a lease, and vet potential property management companies. Earning additional income while away…