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I'm not a landlord, but I do work for a bank that finances such properties and know a person who owns some property as a landlord. I don't know if you've thought too much about financing yet, but a thought for you as far as financing goes: In Canada, many banks offer a financing option for properties where you have a mortgage loan and mortgage line of credit. The mortgage portion operates like any standard mortgage does and it could be variable or fixed rate, short term, long term or whatever you want. The line of credit is a piece of revolving credit that's typically at a fairly low interest rate that's also variable based on the prime rate. What it would let you do is use any available equity you have in your home to pay for any repairs (assuming you have any equity) or any expenses. It goes without saying, but it'd be a good idea for you to explore the rental market you're looking to buy in as well as you might be very surprised at what you can rent a house for. The house next door to me is renting for $1600 a month not including utilities. The mortgage payment on my house is only $900 a month property taxes included. Assuming that person got a deal on their mortgage like I did, they are making a crap ton of profit. Another thing to consider to is possibly opening up a business to explore different income tax deduction opportunities. Businesses are taxed differently than individuals and there are lots of opportunities to write off expenses (legal fees for the mortgage, bank fees, whatever). For example, if you own a corporation, you could pay yourself in dividends to reduce the amount of income tax you have to pay--in Canada obviously. Anyway, good luck!
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May 9, 2013 01:08
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| # ¿ Apr 29, 2024 13:16 |
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