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…
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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,…
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…