San Diego Housing Market News and Analysis
Rental Economics Sweet Spot
User Forum Topic
Submitted by matt on June 1, 2012 - 11:26pm
Curious on the forum's views. Does a "sweet spot" exist in the context of investment property economics once you factor things like mortgage interest deduction, income tax liabilities, depreciation dynamics, maintenance costs, cash flow, etc?
For example, is it advantageous to just cover your costs to minimize tax liabilities? How should one think about trade-offs between paying debt down vs expanding a portfolio? What are the advantages of being more or less leveraged? How do professional's think about yields?
I understand that everyone's situation and strategy may be different but also curious if there is a more rigorous financial approach (or sweet spot) to managing the longer-term economics of investment properties... a formula that professional investors live by (outside of owning free and clear and enjoying great cash flow :).
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