If you’re spending more than 30% of your gross monthly income on living expenses, you might be what’s known as “house poor.” A recent survey by HomeTap found that nearly 20% of U.S. homeowners feel like their monthly housing costs impede their ability to achieve other financial goals most of the time, and an overwhelming 73% feel it some of the time.
Looking to purchase and profit from a rental property? In this article, we're going to give you some important tips on how to buy a rental property. These are the steps every budding property investor should take to pick a good cash-generating rental property. By following these steps, you’ll be well prepared to buy your first rental property. As a form of real estate investment, buying a rental property is considered to be a very good one.
You should buy a rental property if you want to diversify your holdings beyond stocks and bonds. The biggest advantage of buying a rental property is that it's a passive investment that required very little day-to-day management from owners or landlords. The other advantage is that you start earning a return on your capital investment immediately in the form of rent. Imagine this – After you make the down payment and pay all closing costs, the renter pays off your mortgage. How good is that? 
If you are planning on increasing your wealth, the best investment to deal with is the real estate. Investing in real estate has some incredible tax benefits. Other benefits are an increase in property value due to appreciation and good cash flow in the form of rental income. It is easy to find the lists of these tax benefits of real estate investing, like the ability to deduct nearly every expense associated with the real estate or how to qualify to exclude from your income all or part of any capital gain from the sale of your main home.
However, it is equally easy for someone to inflate or conflate various tax benefits given by the IRS. Investors dealing in real estate get the maximum tax benefits in the name of deductions, which we'll discuss in detail. Deductions that are accounted for can be depreciation, property tax, repairs, or any other form of expenses. These breaks in taxes are helpful to a lot of people dealing with real estate as their full-time business. Let’s look at the top tax benefits of investing in real estate using hard numbers. This is the basic introduction of how tax benefits in real estate work.
Denver has been one of the fastest-growing metro areas in the United States for years. It stands out for ranking among the top ten in quality of life, as well. That is reason enough for many potential real estate investors to consider buying Denver investment properties. Take its relatively low taxes and landlord-friendly laws into account, and this looks like a great time to buy. However, some areas are better than others.
Let’s learn more about the local real estate market as a whole before we tell you which neighborhoods are the best places to look for Denver rental properties. The homes in the Denver area doubled in value from 200,000 to 424,000 dollars over the past ten years. The median home price hit 480,000 dollars at the end of 2019. That translates to roughly 7.5 percent annual appreciation rate for ten years straight. For comparison, wages only increased by about 2 percent a year.
