Locate And Purchase One Great Investment Property

This ideal wealth builder concept is very simple, and can be summed up in one sentence!

Or be even more aggressive and buy 2 properties a year. Buy one investment property per year for the next 10 years. Double your tax- free income! Here's how it works: Find yourself an Exclusive Buyer's Agent who knows what you' re trying to accomplish. However, we will use, for this overview one property. This person will be invaluable to you in locating the right properties. Then get to work!

This person will not have any conflict of interest and will be there just for you. Locate and purchase one great investment property. Look for a home in an up- and- coming area. Try to stay in a$ 125, 000- $150, because you want, 000 price range this property to appeal to the widest segment of renters without being on the low end. One that is well constructed. But keep in mind that the most important consideration is the location and the property itself.

If it's priced under market, that's great. You' re going to be in this for the long- term! Then keep repeating the procedure for up to 10 years, always being careful to find just the right property. Year# 2- Repeat the same procedure. The example I' m presenting will be based on the following considerations: The home has been maintained in ideal condition. The rental market for the area has also increased. Both the area and the home have appreciated in value.

So, here's how it works: Refinance the home you bought in year# This$ 150, 000 home( at least in the Middle Tennessee market) should now( 10 years later) be worth$ 225, 000- $250, if you have, 000 purchased it following the above guidelines. Proceeds from a refinance are not taxable income, so you are looking at approximately$ 100, 0000 of tax- free income. You will have also kept the property rented, which has made all your payments. and you' ve been able to take advantage of all the tax breaks associated with rental property. You' ve not sold the home( which would be taxable income) .you' ve only refinanced it! You bet they could! Could most people live on this amount of money for a year?

OK- So now we start repeating the process all over again. This system will provide tax free income for years to come. In year# 11, you will refinance the property you bought in year# .and so on. You will only have to work if you choose to do so! Just be sure to keep the properties in good condition and they will serve you well for years to come. Isn' t that a great feeling? It just requires some careful planning.