Featured Investment Property of the Month

At Only $247,500 with Positive Cash Flow - Why settle for an ordinary investment when you can own a prestigious landmark and a piece of history with consistent rental cash flow in the heart of burgeoning gold mining and gaming casinos? Upside exists by increasing income to market rents and passing on utilities to tenants. The Tatlow Building, which is listed in the National Register of Historic Places, offers 5 apartments and a distinctive corner retail space with a decorative stamped metal ceiling and large store front windows. Built in 1899, this building has been immaculately maintained in order to compliment and enhance its rich heritage. Click here to download a property brochure including a financial statement and here for more information and photos. Select the "Featured Listings" tab.
Call Cheryl at Denver Realty (720-373-0654) to schedule a preview of this investment property!

What is a 1031 Exchange?

A 1031 tax deferred exchange allows an investor to "defer" taxable gains on a property when they sell that property and invest in another "like-kind" property. This is a provision of the Internal Revenue Code enabling tax payers to continue to build wealth while deferring the capital gains tax on a property until the tax payer decides to cash out of that property. This has great advantages for estate planning too. There are strict rules that a tax payer must abide by in order to get this special tax treatment. A tax payer can also obtain a "reverse" 1031 tax deferred exchange. That's an event whereby the tax payer buy's a new property before selling the prior property. Be sure to work with an experienced realtor and intermediary when considering investment sales and purchases using the 1031 tax deferred exchange. One slip up, and the benefit of the tax treatment is gone.

Tips For Renting Your Investment Property

Buying investment property can be rewarding and yet challenging at the same time. The outcome is dependent on the type of investment property you possess and your goals for that investment. These things vary depending on whether the property is to be held for long term appreciation or to turn a dollar quickly with a "fix & flip" model. If you are choosing to hold a property for long term appreciation, then you'll want to make sure that the property "cashflows" for a solid return on your investment. Different properties make for different approaches to determine your cashflow and appreciation. Here are a few tips to help you make your investment real estate payoff when holding for long term and leasing those properties:

• Always qualify the tenants financial ability to regularly pay the monthly rent.
• Be sure to run a credit report and a background check on any prospective tenant.
• Conduct a thorough interview with the tenant reviewing the expectations of the lease agreement.
• Execute a written lease agreement. These are concrete and enforceable when in writing.
• Collect a reasonable security deposit and include a penalty for damage that exceeds the amount of the security deposit.
• If pets are to be allowed, be sure to require a pet deposit.

To learn more, talk to a real estate agent who can help you identify your goals and guide you through the maze of investment real estate.