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Tag Archives: commercial rentals

Owning Rental Property: Year Two

Two years of being a landlord

It’s been almost two years since we became landlords. We are not professional real estate investors in any sense of the word, just people, like many of you, who are looking at investments that will build wealth and allow us to be financially independent. Here’s how we did in year two of owning rental property. Residential Property The residential property is humming along nicely. We did turn over a tenant, but the property management company had one waiting to move in, so there was no loss of rental income. There are some things that will need to be done on this property eventually. Some of the windows should be replaced, the furnace is old, and the dishwasher and washer/dryer set are probably from the late 80’s. We are prepared for any of these expenses whenever happen, but so far, so good. I’d say we are on deferred maintenace at this point. Aside from a few minor repairs, we haven’t spent much except for property management, mortgage, and taxes. This rental has netted $4081 for the year. Not enough to retire on, but not bad for such a little house. Commercial Property I’m almost hesitant to write about this building because what ...

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I Bought A Building This Week

being a commercial landlord

It’s been a fun week. I did some laundry, got a haircut, and, oh yeah, bought a commercial building. Before you think I’ve lost my mind, it really wasn’t that big of a deal. I’ve owned half of the commercial building that holds my optometry practice for almost ten years, and this was just the other half of the purchase. Commercial real estate is a bit different that residential. It has pluses and minuses, but it makes sense if you are your own tenant. Keeping the Tax Man Away One thing I didn’t really understand or ever think about before owning a brick and mortar business was that you can own your own building and still pay yourself rent. It is a good way to take income out of the business without having it taxed as part of your salary. In reality, smart business owners would like their net income to be zero or even show a loss. That doesn’t mean you aren’t making money. It just means that you are running as many expenses as you can through the business so that it helps with income taxes. For example, I use my cell phone to take emergency after hours ...

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