The Four Ways to Make Money in Real Estate

[John Reagan Johnson]

With this year already off and running (can you believe it’s already February?!), I wanted to highlight the four different ways you can make money in real estate:

1. Cash Flow 
- money coming in is greater than your expenses. (Interest rates and equity are key factors for cash flow)
2. Appreciation 
- real estate values double every 12 years. Over time your property value will continue to go up, which you cash out on the sale.
3. Tax Breaks
- I am not an accountant, but I recommend conversing with one to see all of the benefits to owning a rental property. Keep more of that hard earned money in your pocket.
4. Debt Reduction 
- at the very least, another human being is paying down your mortgage and increasing your equity. Yes, you may have to pay some money out of pocket over the year, but someone else has invested exponentially more over that same year. What if I told you that you could purchase your house by only paying for 20% of the property value? Would you take that deal?

If you have any questions concerning these points, do not hesitate to reach out and ask questions!