What’s in it for you? It is a common question when you are approaching a new endeavor. Savvy investors can tell you with confidence that real estate is one of the best wealth creation strategies, and that the perks are numerous. However, to achieve this success, investors need to thoroughly educate themselves about investing in the Cincinnati and Dayton real estate market, performing their due diligence to ensure the highest ROI/return on investment. Real estate is about numbers, so you must understand the tools that pros use to calculate the potential of an investment opportunity.
Reaching your goals as a real estate investor requires managing your business correctly and dedicating yourself to calculating real estate investments while focusing on minimizing your risks. In addition, investors must maintain a watchful eye over their portfolios. Staying abreast of local, state, and federal laws governing tenants and following the local and national real estate market trends allows investors to make real-time adjustments that protect their wealth. It’s practically a full-time job in and of itself – which is where we come in. Rather than placing the burden of all of this onto your own shoulders, you can choose to work with Ohio Turnkey. We bring you quality investment properties at below-market prices, and since we never buy anything that we aren’t interested in holding ourselves, you know that it’s a good investment before you even see the address of the property.
If you’re interested in doing the bulk of the research yourself, read on as we explore five ways owning Cincinnati and Dayton investment real estate will impact you. Please note that this article is for informational purposes, not financial or legal advice.
Tax Benefits
Tax advantages are one of the ways owning Cincinnati and Dayton investment real estate will impact you.
When making wise investments, real estate investors realize tax benefits that outweigh the advantages of nearly any other investment type. These are just a few examples of benefits; for instance, depreciation allows you to deduct a portion of the value of the building each year; in commercial real estate, accelerated depreciation allows investors to write the total value off in one year. In addition, investors can utilize 1031 exchanges to defer taxes. Professional investors like those at Ohio Turnkey LLC can help you understand more about benefiting from tax deductions and the importance of timing your entry or exit of investment properties.
It is also worth mentioning here that the property taxes you find in southwestern Ohio are quite reasonable, and if you’re an out-of-state investor, they’re likely lower than whatever rates your own local property taxes may be.
Cash Flow
A steady monthly income stream from an investment property, known as cash flow, is another way that owning Cincinnati and Dayton investment real estate will impact you. Cash flow analysis is crucial to help investors narrow down the possibilities, and it forces them to consider the expenses they will incur, helping to avoid surprises for beginners. Increase your monthly cash flow and realize all the benefits of making educated decisions about your investments by working with a professional buyer like those from Ohio Turnkey LLC and their full-service in-house team of industry specialists, including everything an investor needs to succeed.
Equity Capture
When you make a great deal, another way owning Cincinnati and Dayton investment real estate will impact you is through the equity you capture. For example, if you purchase a property with an after-repair value or ARV of $150,000 for $120,000 and invest $15,000 in repairs, your net worth rises by $15,000 through capturing the equity. The pros at Ohio Turnkey LLC built a career investing in Cincinnati and Dayton real estate; they know the market and have the experience to help you pinpoint the best properties to grow your wealth.
Even better, we do all of the repairs and renovations for you, which is what allows you to capture that equity immediately (all the better to refinance in a few months if that’s your plan).
Appreciation
Appreciation is another impactful benefit of owning Cincinnati and Dayton investment real estate, as the value of your holdings continues to increase over the years, with a plan to make a return on your investment in the future. Depending on your strategy, you may focus on cash flow when considering investments, or you may look more closely at long-term appreciation, but you likely already know that placing your bets heavily on appreciation is riskier. Not all investments will meet both goals. Property location is one of the most critical factors in appreciation and working with local professional investors like those at Ohio Turnkey LLC who know Cincinnati and Dayton to help narrow down your options and decrease your risks. When considering long-term buy-and-holds investments, it is important to place more emphasis on cashflow than on appreciation, but you definitely want to invest somewhere that has steady and consistent appreciation overall, even if those gains are relatively minor in the short-term.
Paying Principle Down
In the event you use financing to purchase a property, paying down the principle is another way owning Cincinnati and Dayton investment real estate will impact you as each month passes, reducing the balance on your loan. Unlike sinking your initial investment into a business, your down or initial principal investment in real estate appreciates, and you will regain your down payment upon selling your property. Again, the seasoned professional investors at Ohio Turnkey LLC can help you make the right decisions to create the highest possible returns. Keep in mind, though, that cash is still king, and you will get a much better deal by purchasing properties in cash – you can always refinance and pull the majority of that investment back out to roll into the next one.
Let the professional investors at Ohio Turnkey LLC show you how Cincinnati and Dayton investment real estate will impact you before you sign a contract. There is no obligation whatsoever to talk to one of our professional investors about your investment goals or any questions or concerns you might have. At Ohio Turnkey LLC, we understand the importance of communication and being heard, so we stop and listen to ensure everyone is on the same page. Share your vision of your real estate portfolio with one of the professional investors at Ohio Turnkey LLC, and let us guide you to achieving your dreams. At Ohio Turnkey LLC, when our investors succeed, we succeed. And don’t forget to ask your professional investor from Ohio Turnkey LLC about our current inventory of the best investment properties available in Cincinnati and Dayton. Call Ohio Turnkey LLC at (513) 443-8008.