Sunday, November 10, 2013

Buy Vs. Rent

According to Trulia, some of the best cities in the US in which to "buy" rather than rent are:
Detroit, Milwaukee, Chicago, Toledo, Columbus, Cleveland, Minneapolis, Indianapolis, St. Louis, Kansas City, Little Rock, Tulsa, Oklahoma City, Denver, Ft. Worth, Houston, New Orleans, Birmingham, Memphis, Nashville, Atlanta, Jacksonville, Orlando, Columbia (SC), Charlotte, Virginia Beach, Baltimore and Philadelphia.

I have two rental properties in Oklahoma. My cash profit on both properties was over $10,500 for the 2012 fiscal year. Yet, with deductions for mortgage interest and depreciation, I reported a total net profit of $33 on the two properties on my IRS income tax. Gotta love income-producing real estate for cash flow and tax deductions!

And to round out the rent vs. buy consideration: It is better to rent in Honolulu, or the San Francisco Bay area, rather than buy.

Happy investing!

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