4 Benefits to Buying Investment Property in Frisco TX

Purchasing investment property in Frisco TX has great financial potential and equally significant risks. For a business-savvy individual, owning an apartment building or other real estate investments can be the key to financial freedom. Here are a few benefits of investing in income property in Texas.

1 – You’re in Charge

Owning investment property is just like owning a business. You’re the boss, and you decide what real estate to buy, who to rent to, how to manage the property, and what to charge for rent. Problems may come up in the day-to-day operation of your investment properties, but hiring a property or apartment manager to handle it for you, in exchange for free or reduced rent, keeps your schedule free to deal solely with the property’s financial issues and other business interests.

2 – Appreciation of a Leveraged Asset

When buying an investment property in Frisco TX, you can spend a small portion of your own money and borrow the rest from a bank. When you finance a property using a small amount of equity (your money) and a large amount of debt (borrowed money from the bank), it’s referred to as leveraging an asset. While this does contain a natural amount of financial risk, with proper research, a bit of luck and the right property, you may end up selling the real estate for more than the loan amount, and keep all the profit for yourself.

3 – You Can Take Advantage of Big Tax Write-Offs

If you own investment property in Frisco TX, you can write off credit card purchases used to improve or maintain the property, legal fees, repairs, insurance on the property and other expenses. The government allows investment property owners to depreciate your real estate’s purchase price per a depreciation schedule that’s determined in advance. This holds true even if your property increases in value. Always consult a tax professional about appropriate tax deductions for your property.

4 – Rental Income is Easy Money (in Most Cases)

Unless you’ve rented to nightmare tenants, depositing monthly checks is a winning situation for landlords. When you receive checks from tenants in your apartment building, for example, you’ll need to subtract the cost of your mortgage payment, maintenance fees and vacancies. After that, most landlords will net a tidy profit, depending on the location and market rate for rentals. In trendy or “hot” areas, landlords can charge a lot more for rent than in low-key areas – and get tenants to pay it without question.

If you’re interested in buying investment property in Frisco TX, call Iryna Mitchell Real Estate to learn about available properties and financing methods. Even if you think owning investment real estate is beyond your reach, there are many potential properties in the Frisco areas suitable for novice investors. Set up a consultation with Iryna at 903-439-5454 to discuss investment options.