Rental-Property Profits : A Financial Tool Kit for Landlords

From the publisher. Real estate investing doesn't have to be risky. With rental prices climbing, vacancy rates low, and property values rising, real estate investing has become a tempting option for achieving financial security. The idea is simple: buy a property, fix it up, and then rent it until you're ready to sell. But the reality can be confusing, requiring in-depth financial and tax knowledge that most newcomers lack. Rental-Property Profits walks you through every important step, from spotting smart investments to taking advantage of tax breaks and loop holes. With clear language and updated forms, worksheets, checklists, and formulas, this new edition explains how to: evaluate risks and opportunities in a post-recession market; determine if you qualify for an investor loan; calculate cash flow and maintain healthy levels; establish sound bookkeeping and accounting systems; handle rental property depreciation; report annual income and expenses accurately, and much more. Housing is bouncing back, and the number of real estate investors is growing. This book will help build your nest egg, while bypassing costly mistakes CONTENTS Figuresvii Tablesix Introduction: What This Book Will Do for Youxi 1. The Nature of Real Estate Investing1 2. Getting Started in Rental Property Investing19 3. Cash Flow: The Essence of Rental Real Estate51 4. Picking the Best Investment for You71 5. Bookkeeping Basics for Rental Property91 6. Keeping Track of Real Estate Transactions123 7. Creating a Timely and Efficient Accounting System139 8. Handling Depreciation for Rental Properties157 9. Understanding the Tax Rules for Real Estate183 10. Tax Reporting for Annual Income and Expense197 11. Including Real Estate in Your Portfolio227 Glossary241 Notes245 Index247