http://nonprofit-success.com/about/ Whether you own investment properties in Los Angeles or not, you’ll be happy to know the advantages of owning one, just in case you’re interested in buying one as investment yourself one day! If you’ve been keeping up with Alexis Hall Inc., then you’re already aware of the first three advantages of buying an investment property. Catch up now and continue reading more benefits you can look forward to if you decide to invest in a property in LA.
The tenants you choose will amortize your mortgage for you!
buy Gabapentin for dogs Did you know that the most popular loan is the 30-year fixed rate mortgage? This type of loan will have the same interest rate during the entire duration of the loan. However, in the beginning of the loan, a significant amount of money that is put towards the mortgage will be paid towards to interest rather than the principal, but by year 15, it is about at 50/50 split between interest and principal. So, the more principal you have the tenants pay for, the more equity you are creating for yourself. Let’s say that you have a $90K bank loan that has a monthly mortgage payment due each month of $500. During the first year, approximately $385 of each payment will be put towards paying the interest of the loan, while only $115 will go towards paying the principal on the loan. So by year 15, approximately $270 of your mortgage payment will be going towards interest and the remaining $230 will be put towards the principal. You can look at it this way, every year that you own this property, you’ll be using the tenant’s money to pay off the loan and more importantly, the debt. You’ll be able to reduce the amount of the loan significantly, and eventually, you’ll be able to access the money of built wealth either by selling the property or refinancing the loan.
Don’t go anywhere just yet, learn more about the investment properties available in Los Angeles and stay tuned for one more advantage of owning an income property.