I should also mention that the tax benefits on real estate are sick. Essentially I will pay almost nothing on my profits. If my projections are accurate of course. If I'm paying taxes on it, then I'm doing better than I expect
can you explain this? I thought you paid capital gains on investment properties, but I know almost nothing about tax law.
You pay capital gains on the sale. Unless you do a 1031 exchange, but that's another story.
If you have a rental, you get to deduct depreciation, expenses, and mortgage interest. Even though it will most likely appreciate over the long term. Depreciation on non commercial property is the nice round number of 1/27.5 of the property. I can't say for certain if that is purchase cost or appraised cost, but it's substantial either way,
In the end, the cash flow you have is usually offset by the deductions, thus very low (if any) taxes on the profits.