Investment Property Owners – End of Year Review Is Worthwhile
By Martin Cantu
Consider timing any deferred maintenance items into the current year. It may be advantageous to accelerate those repairs into the current year, rather than waiting until next year. Consult with your tax adviser to make this decision.
Take look at your lease agreements and make any changes to your standard contract now, rather than waiting until the lease period ends. Its always easier to make these changes without the pressure of a new lease period starring you down.
Review your mortgage and your escrow account. True, refinancing your investment property in this mortgage market is tough, if you took out your mortgage in the last 3 to 4 years. While rates are down, qualifying is much tougher. But, its worth taking a look at your escrow account – is your insurance coverage in line with the escrow payment? Can you lower your insurance coverage? Can you get a lower quote? What about your property tax status?
An important tip to keep in mind – if you have a balloon note and need to refinance in the near future, you may be forced to adjust your tax paying strategy and report a greater taxable income, just so you can afford a refinance in the future. I’m not suggesting that any of you have under reported your income in the past – but the entrepreneurial tax formula of “zero” income is a thing of the past. Better adjust now, if you plan on refinancing in the future.
New Technology – You may be tech savvy, but you may be amazed at the new tools now available to you – some of which may help you cut your costs and accelerate your income. These tools come in all shapes and sizes and may allow you to leverage technology in ways you never imagined. This is one of those rainy or snowy day things that may pay off big.
Property Management – simple question really. Are you getting all you need out of your current firm? Have they leveraged technology to may your life easier? Are they providing you with a value added service, or just same old same old? You may want to consider changing firms.
San Antonio attorney Martin Cantu invites you to visit his website, http://cantulegal.com/, for more information on how to obtain the legal help you need. Martin also contributes real estate articles to
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