I think the assumption right now is that we don't want to teach just for tax benefits. I agree 100 %. Largely it's a values question. Do you value cash floe first and foremost, in which case you might be drawn to a montgomery, alabama? Or do you value market appreciation, even if you had to trade off some cash floe for it?? You might be looking at a kerney nebraska. Or do you want that hybrid?
#373: How do people make money in real estate?
Many focus on rental income, but this is only one of five ways that properties create wealth.
We explain five surprising ways that real estate builds your balance sheet: cash flow, appreciation (market-based and forced), tax benefits, principal paydown, and instant equity at closing.
Why does this matter for long-distance investors?
If you’re investing out-of-state, you’ll need to choose a city or town. How do you decide? First, think about how you want to bias your returns. Do you want to optimize for cash flow? More appreciation potential? Identifying this will help you align your city/town selection with your financial goals.
If you’ve been thinking about investing in real estate – especially if you might invest long-distance – you’ll love this episode.
Enjoy!
For more information, visit the show notes at https://affordanything.com/episode373
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