April 15th is just around the corner. If you’re really on the ball, your federal and state taxes are already submitted, but if not, there’s no need to panic just yet. You’ve got plenty of time and some things to consider. If you’re expecting a refund from your taxes this year, maybe it’s time to think about investing it. If you have ever considered real estate, this is a great time to talk to a residential property management company.
Many people get so excited about the unexpected money that they blow it on something they think they really want. Sales of new cars, televisions, and vacation packages increase this time of the year for a good reason. But once that new car smell wears off or the vacation is over, many people probably wish they’d made a wiser choice.
That income tax return could make a nice down payment on a house, condo, or townhouse that you can rent out to improve your family’s financial health. In the long run, you’ll build equity in the property, but residential real estate also gives you the opportunity to increase your income now when you make a smart investment.
Not sure where to start? An experienced property management company that keeps up with the local market can advise you. In the Denver area, Legacy Properties-PM can help you find real estate that is a sound investment. We know what tenants are looking for, and the right property will make finding responsible renters easy.
If you’re not sure you have the time or inclination to be a landlord, our property management services can take care of most of the work for you. From finding tenants and taking care of the leasing paperwork, to collecting rent and fielding maintenance calls, our services allow you to reap the benefits of making a wise financial investment without taking up a lot of your time.
This year, don’t blow your income tax return on something frivolous. Make a wise investment that will start a financial legacy for your family. Legacy Properties-PM can help you with the process, so call 720.989.1996 or contact us for more information.
When you buy a rental property with a self-directed IRA (individual retirement account), it’s not just easier to rely on a Denver property management company.
It’s also the legal approach. According to an article by Forbes, the IRS expects a third-party property management company to oversee property owned as part of a self-directed IRA arrangement. Some investors have misconceptions because the term “self-directed,” conjures up a DIY approach. While you do decide which property to buy and who to hire as contractors and property managers, you can’t perform work yourself or live in the rental. In other words, you don’t put “sweat equity” into a rental you purchased through a retirement account.
- Understanding the advantages
Some of the advantages of buying an investment property in Denver with a self-directed IRA include having your asset grow tax-free and relying on others to do the manual labor and management. Another major advantage is the fact that using a self-directed IRA means you can make an all-cash purchase on an investment property. In many cases, a seller will offer a better price or terms for all-cash buyers. You can also tap the self-directed IRA to pay contractors and your property management company, which means no money out-of-pocket for you.
- Remembering the restrictions
The IRS is strict about rental properties purchased through an IRA. You can’t use the property as your vacation home or personal residence. You can’t allow your children, grandchildren or parents live in the home. According to a piece by Wealth Counsel, it’s important to talk to a tax attorney before forming a self-directed IRA. Since the housing decline, a lot of investors have misused the accounts by failing to comply with IRS rules.
Having a property manager for your rental property in Denver can provide peace of mind for most pre-retirees who want a good return on their investment. With the volatile stock market and financial uncertainty in the global financial markets, it makes sense to buy real estate in a booming market such as Denver. Using a self-directed IRA helps investors who have retirement savings but don’t want to dig into their emergency fund or paychecks.
At Legacy Properties-PM, we provide excellent property management services for investors in the Denver area. We belong to the NARPM, the National Association of Residential Property Managers. For more information of self-directed IRAs, please call 720.989.1996 or contact us.