Did you know real estate investment, when done properly, is one of the most secure investment forms of all? It’s also easy to invest in Utah real estate without a huge down payment, especially if you’re after passive real estate income.
Two Ways to Invest in Utah Real Estate
If you’re thinking about real estate investing in Utah, you have two basic strategies: buying depressed homes to flip or buying income properties to rent out. Flipping properties often has the biggest risk but the highest potential short-term gains. Income properties, on the other hand, can be a steady source of passive income that you can use for your own financial security.
The Advantages of Rental Properties
Buying income properties is typically seen as the safer option and it’s easier to get financing in place to buy the real estate. You’ll get a number of tax benefits which include deductions for home depreciation, mileage driven to manage and maintain your property, advertising, repair work and cleaning, homeowners insurance, mortgage interest, property taxes, utilities, tenant credit report fees, management fees and any professional fees. With annual depreciation, you can even show a loss on paper while making money on your property!
Because everyone needs a home, Utah real estate investment is stable and offers you steady passive income and real financial security. Property values also tend to climb steadily over time so you’ll be in an ideal situation when you’re ready to sell.