Finished Your Flip? What Now!?

You May Consider Renting--Passive Income

Renting an investment generates income consistently over a long period of time. If you decide to sell the property down the road, you may enjoy a sizeable return--especially true if you purchased at the right time and sell at the right time. Additionally, the property has tax incentives, flipping does not. Investment income is usually taxed at 15% (20% if you make a lot of money). If you compare this tax rate to flipping income at 25-43%. Rental property owners can also write off expenses such as, repairs, maintenance, driving to and from the property, the cost of a property manager, the list goes on and on. Your single biggest advantage is writing off depreciation of your asset. Depreciation can potentially save you thousands of dollars a year in taxes.