Investing in Recreational Real Estate is not for everyone. But if you’re looking for a way to increase your personal wealth and occasionally enjoy your investment, purchasing a vacation rental property on Lake LBJ and in the Highland Lakes area may be for you.
Keep in mind, any opportunity has a downside risk. But right now experience shows vacation rental property investors can benefit from informed real estate professionals who can find the right property in the right location.
- LOWER YOUR TAXES
Investor tax incentives can be substantial. Even if rental income does not cover the investor’s expenses, tax breaks may actually make up the difference. As an investor, you can claim deductions for actual costs you incur for financing, managing and operating the rental property.
- HAVE A POSITIVE CASH FLOW
A positive cash flow results when the rent you receive exceeds the total you pay for the mortgage, taxes, insurance, maintenance and other cost. Of course, a positive cash flow is impossible without rental income. With the help of your professional Realtor® you must find a property manager with the resources to line up vacation property renters and keep the bookings coming.
- GROW EQUITY
Even at a modest rate of appreciation, recreational real estate may well yield a higher return on the cash investment than would some other financial investments. Each mortgage principal payment you make is a payment to yourself.
- CONSULT A PROFESSIONAL
Your best asset in choosing investment property is your real estate professional. Knowledgeable agents can locate prospective properties, provide information and perform a market analysis.
Remember, you’ll also need the professional assistance of a real estate attorney and a tax advisor or financial planner.