3 REASONS WHY I OWN RENTAL PROPERTY & RENT MY APARTMENT
I've always been the type of person to go without until I can have what I want. Simply put - Until I can do what I want to do, I do what I have to do. I cannot afford to comfortably live in the type of home that I want, in the location that I want. My definition of affordability is far different than most people and especially- the bank!
2. My emotions just aren't in it.
It's hard for me to think about my future home as anything more than an investment. I'm not the typical emotionally-driven Buyer & I'm fine with that. Hardwood floors, granite countertops, subway tile back splash, and a quiet neighborhood aren't at top of my "Must-Have List." Right now,profiting an extra $375/mo. is more attractive to me than putting 20%+ down, then paying a $2,000 PITI + HOA to live in the type of home that gives me butterflies. I'd prefer to build or buy in a developing/transitioning area for under market value.
3. I had to reduce my tax burden- ASAP!
Taxes were eating me alive. When Uncle Sam said "Pay me", I said "How Much?" If you are not single & kid-free, you cannot relate to this point. If you are, pay closer attention to your check-stub. I thought I made $XX,XXX but after taxes I made $XXX... Okay, maybe that was an exaggeration, but even still! It was a sad story. Purchasing my rent house under my LLC dramatically reduced my taxes. The tax benefits of owning real estate can be phenomenal.
Don't get me wrong, I am saving to buy/custom build my own home. BUT only after I land the right deal (location + price). I'll be ready when the time comes. Ultimately, I've assessed my short-term and long-term goals and made the best decision for ME. Don't let people pressure you into thinking you're a horrible person for renting & more power to you if you own the home you live in!
If you need help assessing your short/long-term goals. Reach out to me
Stay tuned for my next article: How I purchased my rental property, with $50K+ in student loan debt.
Disclaimer: I have a roommate, so my rent is cheap. The money I pay to rent, isn't anything to brag about.