Foreclosures are bad for neighborhoods. You know the story, and it’s probably happened in your community. A house goes into foreclosure, the original owners move out, and the property sits there, vacant. Over time, it becomes an increasing eyesore, and worse, it starts dragging average property values down for the neighborhood as a whole, including, of course, YOUR house.
People grumble about it as they pass by, but nobody seems to know what to do. One idea, buy it yourself and turn it into a rental! Rather than looking at it as a drag on neighborhood property values, seize the moment to get a great property at a great price and make some income on the side.
How do you know it’s a great property? Well, you loved the neighborhood when you bought your place, and otherwise, you would have picked a different area. The great thing about this idea is that it gives you a win on so many other fronts.
By taking the foreclosed home off the market and making it “rental ready,” you remove the stigma from your neighborhood: no more foreclosed house, no more drag on average property values.
In addition to the already attractive raft of benefits you get when you buy a rental property, you can deduct all the expenses involved with owning the rental property from your taxes and even more off via depreciation. Again, that fattens the bottom line for you and makes it all the more attractive.
By themselves, the tax benefits (including depreciation) make owning rental properties a pretty solid bet. Better by far than the tiny amount you’ll make by simply leaving your money in savings, and far less risky than playing the stock market. When you combine those features with the fact that you’ll be helping boost your OWN home’s value by pulling a foreclosure off the market in your neighborhood, the benefits become almost too good to ignore.
Don’t look at the foreclosure in your neighborhood as a negative. Flip the script and turn it into an opportunity. Finding ways to do that consistently, over time, is a surefire recipe for success.
If you’ve not been paying any special attention, take a drive through your neighborhood to see if there are any foreclosure homes. If so, it could represent a golden opportunity for you and your family.
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