Short Term Rental Riches 3. Owning a Short-Term Rental vs. Lease Arbitrage
Nov 19, 2019
Dive into the intriguing debate of owning vs. lease arbitrage in the short-term rental market. Discover how property ownership can grant you financial freedom and long-term wealth-building opportunities. Learn about the tax benefits, full control over property enhancements, and the potential for cash-out refinancing. Find out how to effectively leverage your investments and even score properties for 'FREE.' Get ready to rethink your approach to real estate!
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Owning Builds Wealth, Leasing Does Not
- Investing by owning properties builds long-term wealth through appreciation and loan paydown.
- Lease arbitrage can generate cash flow but does not build real estate equity or wealth.
Use Depreciation for Tax Savings
- Buy property to leverage powerful tax benefits like depreciation.
- Depreciation allows you to deduct the property's value over 30 years to reduce taxable income.
Finance to Maximize Tax Benefits
- Finance property purchases to maximize write-offs on mortgage interest and closing costs.
- Tenants or short-term rental guests help pay down your mortgage over time.