This week, I’ve devoted a special episode of Ask Paula to answering questions about real estate investing.
Our first question comes from Ade, who has $25,000 to invest in real estate and lives in the Bay Area. Understandably, he’s thinking of investing out-of-state, and wants to know if Atlanta is still a good city to invest in. Where can the best deals be found?
Krystina lives and has four rentals in Vermont, but she’s sick of the cold. She’s thinking of selling the properties and moving elsewhere. She asks: if you had to start over, where would you buy and what type of property would you buy?
The next question comes from Kayla, who wants to know how to report rental income on your taxes when you also live in the property. Are there any tax implications to be aware of?
Claire is relocating to California, and is curious to know if she’s better off renting, or if she should max out her mortgage loan potential and buy a house that has a detached garage she can rent out to cover the increased mortgage.
Our next question comes from a listener with a paid-off rental who also has an Airbnb on her property. Nice! But, she has a $160,000 mortgage on her own house. She has $30,000 in the bank and wants to know: should she put it toward her mortgage, or use it to buy another property?
Our last question comes from Katie, who’s eyeing a vacation rental in one of her favorite destinations. Does it sound like a good idea? And how can she estimate the cap rate (and her expenses) without a ton of information on the property?
We dive into these topics – and more – in today’s episode. Enjoy!
P.S. Got a question for a future Ask Paula episode? Leave it here!
Thanks to our sponsor, Freshbooks!
You’re busy. You don’t need to junk up your schedule with mundane tasks.
Here’s a question: if you’re an entrepreneur or someone with a side hustle, how much time do you spend organizing invoices, chasing your clients down for late payments, and messing with receipts and reimbursements?
Yeah — more than you’d like to.
Save time by using Freshbooks, an easy-to-use, cloud-based accounting system that takes the stress and hassle out of bookkeeping and, especially, invoicing. You can create an invoice in a few seconds, and Freshbooks’ automated system will handle the rest. They’ll help you get paid faster, with less hassle.
Wanna try them for free?
Visit Freshbooks.com/paula for a free 30-day trial. Please mention this show when they ask how you heard about them.