5 Reasons to Invest in Real Estate Remodels
Jun 05, 2020 | Ed Vasterra
Real estate investing can provide a lucrative and steady income over time. Investing in remodeled homes is a unique sector of the real estate market, which has distinct advantages. Let’s take a look at five reasons why real estate investing in remodeled homes is a good idea and can help you expand your portfolio, grow your returns over time, and even save money on your taxes.
Secure Reliable Income with Real Estate Investing
Real estate is a valuable investment because it is a reliable source of income. Housing will always be a desirable asset because people will always need it.
Any investments or improvements you make to your property can increase its value in a tangible way. Remodeled homes have already received significant improvement so all you have to do is enjoy the benefits.
Start Generating Revenue from Real Estate Remodels
When you invest in a remodeled house, all the work to prepare the property has been done, so you can start using it to generate revenue right away. With the ability to turn a profit from your investment almost immediately, it’s easy to see why remodeled homes make great real estate investing opportunities.
Since any major problems and repairs were taken care of, the property will require very little maintenance for the first several years. By investing in a remodeled home, you get to skip the steps of hiring contractors, finding designers, buying materials, managing remodeling projects, and paying the carrying costs during the renovation process. The convenience of a remodeled home is hard to beat.
Find Simple Financing Options for Real Estate Investing
It’s easy to secure financing for remodeled homes when you’re ready to get started. Because of their completed & turnkey state, remodeled homes are seen as a low-risk investment, which is very appealing to lenders. Also, since you can start generating income right away, mortgage payments can be managed easily, with profits left over for you to enjoy or reinvest into the property.
Enjoy Tax Benefits of Real Estate Investing
In addition to the predictable and steady income, real estate investing has several benefits come tax-time. You can deduct many of the costs related to your property, including upkeep and maintenance, mortgage loan interest, and likely most of the improvements you make to the property over the tax year.
Even though real estate is known to appreciate in value, you can still claim depreciation deductions for your real estate assets on your taxes. You’ll be generating income from your property and enjoying your real estate’s growing value, but can claim a lower income by factoring depreciation. The savings will start to add up and can help to offset your income taxes.
Discover Remodeled Real Estate Investing Advantages
When you’re making your initial investment, remodeled homes can be purchased for a better value than new construction homes. Remodeled homes also have more character than new homes, while still enjoying updated amenities. Generally located in established, desirable neighborhoods, it will be easy to find good tenants who appreciate a shorter commute, proximity to good school districts and parks with large, old-growth and shady trees. New developments won’t be able to offer the same benefits, as they’re often built further from town on clear-cut land.
Real estate investing has never been easier than with remodeled homes. Whether you’re just dipping your toes in the investing pool, or you’re a seasoned swimmer, real estate investing is accessible to everyone. With the right investment opportunity, you can start generating income right away and expand your investment portfolio with beautiful renovated homes that are full of character and West Michigan charm.
If you’re considering investing in West Michigan properties, or if you’re already an active real estate investor in the area, the Hometown Development team would love to work with you. Give us a call at 616-379-3090 or contact us online for more information about our projects and our investment partnership opportunities.