AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
1min snip
The Magic of “Portfolio Rebalancing” and the 1031 Exchange!
Real Wealth Show: Real Estate Investing Podcast
Depreciation and Reinvestment in Real Estate
The basis of real estate investment is crucial as it determines the depreciation that can be claimed. Investors often overlook that depreciation for residential properties is limited to 27.5 years, while commercial and multifamily properties have a slightly longer period. Holding onto a property for decades can result in missed tax benefits if the property appreciates significantly, as the original depreciation basis does not change. Therefore, reinvesting in a portfolio is essential to maximize tax efficiency. Additionally, many investors mistakenly equate real estate investment debt with consumer debt, leading to a misunderstanding of cash flow and equity. Recognizing that a property can cash flow due to equity rather than an improvement in financial performance can clarify investment strategies and help overcome mental barriers preventing better financial decisions.
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode