Return on investment (ROI) is a commonly used metric when purchasing an investment property. In this post, we show you how that same ROI metric can be utilized later down the line when making decisions about property improvements and help you avoid making renovations and additions that aren't going to improve the bottom line. (more…)
Summary: How do you know if a rental property is a good investment or not? One way is to have the right metric to help you analyze the deal. Problem is, there are so many different metrics out there, it can quickly get overwhelming for the new investor. Part of the issue may be that some investors buy properties without a clear strategy. If you have a clear strategy, then it's easier to identify the metric that will help you achieve your goals. (more…)
Summary: What is cost segregation and bonus depreciation? And more importantly, what are the benefits of cost segregation and bonus depreciation? In this article, we will dive into both. When you are a Real Estate Professional or you materially participate in your vacation rental, you gain access to a whole host of tax advantages that are not available to the average tax-paying high-income professional. Cost segregation/bonus depreciation is just one example of that powerful tax advantage. (more…)
Summary: Doctors and high-income professionals have few tax advantages due to their high income and employment status. Becoming a real estate professional can provide significant tax savings but is rarely utilized by high-income earners. In this post, we uncover what you need to know about real estate professional status and how to shelter your income using this favored tax status. (more…)
Summary: Delayed financing is a type of financing that is used by some of our students as part of a strategy to lock up deals in a competitive market. In order to take advantage of these loans, you should understand the rules as well as limitations of these loans before implementing this strategy. As you can see below, doing the right thing can lead to success. (more…)
Summary: Appraisals are an important part of real estate investing. Many new investors know very little about the real estate appraisal process, and the methods used to appraise properties. In this article, we cover the basics of the appraisal process. We also explain how the valuation plays a role in the amount a lender will loan you. Finally, we discuss the details for advanced investing approaches, such as the BRRRR method. (more…)
Summary: Real estate investors often refer to properties (and even to neighborhoods) using a grading system from A to D. A newer investor who is not familiar with these terms may find this classification system to be subjective and often confusing. In this post, I define what we mean by A/B/C/D class properties and explore why Kenji and I prefer buying B/C class properties (more…)
Summary: Welcome to the second part of our Real Estate Year in Review: 2020. In Part I, we covered the details of properties we sold in 2020 and learning pearls from each. In this post, we’re going to look at the first two real estate purchases (out of four) from 2020 (using our older properties as down payments). We’ve chosen to openly share our real estate journey this year with all of you in order to give all of you an opportunity to see what we’re doing and to learn from our experiences, so that you can become better investors yourselves! (more…)
The Summary: A lot of our readers and students buy or consider buying condominiums as investment properties. Purchasing a condo as an investment comes with its own unique set of considerations. The first consideration isn’t unique to condos and is at the core of what we believe makes a good investment: cashflow. The rest are unique to condos and should be considered every time you are planning to purchase a condo as a rental. (more…)
Summary: Vacancy rate is an important component of the cash-on-cash calculator. However, most people don’t know how to calculate it correctly. In this article, we discuss two ways to calculate vacancy and why it’s important to take into consideration both when analyzing deals. (more…)
Our mission at Semi-Retired MD is to help doctors and high-income earners invest in real estate so that they can build lives they love.
By taking our online courses, over 3,000 doctors and high-income earners have started the journey to financial freedom by securing a significant, reliable source of income from real estate investments.