6 Reasons to Hold Your Real Estate Investment

[Jeff Wood]

6 Reasons to Hold Your Real Estate Investment:

1. Real estate is a top-performing asset class. Few investments perform like real estate, doubling in value every ten years in many markets.

2. You've got cash flow and growing equity. As your investment property increases in value, so does rent.

3. There's financial power in leverage. As your property value increases and the mortgage balance decreases, you can refinance or “leverage” the property and pull equity out of the asset to purchase additional real estate.

4. Every year, tax write-offs for asset depreciation help shelter your income along with other expenses associated with your investment property.

5. 1031 exchanges can be challenging, especially in a seller’s market.

6. The fees associated with selling an investment property are significant. They include brokerage fees of up to 6%, title insurance, closing fees, and many other associated fees. Investors are often surprised when their net proceeds are much less than anticipated.