Real estate investing is a long-term proposition. Don't think you are going to be a millionaire over night. It takes years of hard work and dedication in order to succeed in real estate business.
Hold any property at least one year before selling it. Capital gain taxes will be greatly reduced. Consider renting the property for at two or three years.
The rental income generated will help you to properly repair and renovate the property. Many investors purchased properties in the middle of real estate boom with no money down and no equity. If you are going to buy any real estate and want to know about the us tax for canadians, you can search it online.
These investors were thinking of flipping the homes fast and make a killing in the process. Many homes now in foreclosure are due to investors that were caught in the middle and now realize that real estate investing is very hard to time. Long term Miami real estate investing is the secret to a successful real estate career.
Lease Option – Never rent a property with a lease option to buy. Either sell or rent it straight out. A lease option usually is a disaster for both buyers and sellers.
The tenant will demand a large discount of the rent to go towards the down payment and closing the costs. The problem is that tenant will not buy the property at the end of the lease and the landlord/seller will have wasted a lot of money in rebates given to the tenant/buyer.