Rental investment is a huge investment and it is important to be well versed before investing. There are certain things and factors to be considered while buying a rental property. Rental Yield of the property Rental yield is the income generated from your investment property by calculating the difference between the sum of overall costs on a property and the rent received from the property. Understanding and calculating rental yield helps gain a good perspective on knowing t

Investing in Rental Properties Investing in rental properties include buying rental homes - collecting monthly rents and waiting for appreciation, buying commercial properties - leasing it to shops, restaurants etc, buying apartment complex - leasing to tenants and collect monthly rental bills. The choice depends on the individuals and their level of risk and comfort. Some of the benefits of investing in rental properties include Cash flow, Appreciation, Leverage, Control and

What is a Sale leaseback transaction? Sale leaseback is typically a transaction seen in commercial real estate to free up the capital and invest in other means. Let us see how it works in a residential real estate transactions. In a residential transaction, the property owner or the seller sells the home to the buyer and enters into a lease agreement with the buyer for a certain amount of time. The negotiations are made by the buyer and seller to arrive at a middle ground bef

Investing in Rental Properties Investing in rental properties include buying rental homes - collecting monthly rents and waiting for appreciation, buying commercial properties - leasing it to shops, restaurants etc, buying apartment complex - leasing to tenants and collect monthly rental bills. The choice depends on the individuals and their level of risk and comfort. To see whether a rental property will generate positive cash flow, you need to know how to calculate the rent

What is a rental yield? Rental yield is the income generated from your investment property by calculating the difference between the sum of overall costs on a property and the rent received from the property. Understanding and calculating rental yield helps gain a good perspective on knowing the investment potential of the rental property. It also helps the investor to choose the best rental yielding property by comparing the property values with respective rental yield ratio

How does Rental Investment work? Rental Investment is investing in real estate where you buy a property and manage all the expenses such as repairs, renovation and market the property for tenants. Rental investment provides both monthly passive income from the tenant's rent and long term capital from the appreciation of the property. You also get tax benefits from mortgage interest, repairs, depreciation of the property. Rental properties can be single-family, condos, multi-f

What is umbrella Insurance Umbrella Insurance coverage always starts after your limits of the primary insurance limits are exhausted. The limits of umbrella insurance usually starts from a million dollars and up. Also umbrella insurance have minimum limit requirements to be met by the primary insurance before the umbrella policy can be issued. Umbrella Insurance also covers several situations which are not usually covered by the auto and home insurance policy. Umbrella Insura

Current Mortgage Rates As I write this blog the 30 Yrs mortgage rate is approx 3.4% and 15 Yrs mortgage rate is approx 2.6%. Sample EMI Calculation Return of additional payment 15 Yrs mortgage needs $1,140.12 EMI, but doing so will result in $1,473.46 additional principal pay off. Investment of $1,140.12 results in a instant savings of $333.34 in interest. That is 29.23% return on your investment. This is only on the first month EMI. If you are already making an investment in

Short Term / Long Term Vision 529 plan has a narrow vision focused only on education. It serves its purpose well, but rental investment is a long term vision, which may serve several generation if handled strategically. Rental investment could provide passive income which grows along with inflation. Tax Benefits Both 529 and rental investment are made with post tax dollars. The 529 earnings are tax free and is used for qualified education expenses. Rental investment provides

Inflation When you buy your home, there are fixed and variable costs. The fixed costs are mainly your mortgage - principal & interest. The variable costs are property tax, HOA, repairs & maintenance, etc... The mortgage is the biggest expense and if you get a 30 Yrs fixed mortgage the cost is fixed for the entire duration of loan. Let us assume your income is currently $100k and If the wage inflation is steady at 2% for the next 30 years, your income will grow to $181k. Your

Tax Deferred Investment 401k provides tax deferred investment, meaning you contribute pretax dollar into account. But when you withdraw, the withdrawal is taxed as your ordinary income. If you plan your investment correctly, then your income will grow even after your retirement. In this case your tax will be the same or more when you withdraw. So, 401k provides an advantage only if your income tax rate at withdrawal is less than your income tax rate during contribution. If yo