How to get started

To get started in investing you need to determine which area of investing to concentrate on. Rental and Rehab opportunities are everywhere.

Rentals are a longer term investment property because the strategy is to purchase a property and rent it for a period of time. The tenants make the payments and you reap the benefits of having your mortgage decrease while your property increases in value. Even if you're not covering 100% of your expenses for a rental property, it is still a wise investment. For instance if you are paying $50.00/month above your income from the tenants, you can write off the entire amount and you are getting a property for less than $50.00/month. With appreciation and your mortgage decreasing, you profit more than you spend.

Shorter term investments are Rehab properties. These are easier to find for people who like to fix things themselves. In most cases, you will break even or lose money if you hire someone to do the repairs. Labor is the costliest ingredient in most repairs. If you don't know how to do the repairs yourself, partner with a friend or relative who does. The goal is to finish the repairs as quickly as possible and get the home back on the market.

Either of the two investment strategies have wonderful tax benefits. You can basically write off almost every cost associated with buying and maintaining the property. For instance you can pay yourself for cutting the grass and then write it off on your taxes.