Property, Plant and Equipment

The best reasons to invest in real estate is that real estate is:

• appreciating asset
• tax advantages
• banks will easily give you loan unlike a business loan
• cash flowing property; rental
• fix and flips
• capital gains on selling a property and the taxable portion
• estate and trust

Cons

• high down payment
• you can qualify for 5-10% down payment
  • VA or FHA loan
• being fixed in a location
  • market forces depends on geography
  • job numbers
  • stock market
  • real estate market

Bank Loan

• abide by terms of the mortgage deed
• binding clauses
• foreclosure
• closing costs
• brokerage fee
• private mortgage insurance
• appraisal costs
• inspection
• municipal taxes
• mortgage points

Maintenance

• municipal code
  • compliance
• surveying
  • set back
  • property line
• plumbing
  • water supply
  • drain
    • sewer
  • waste
    • septic tank
  • vent
    • traps
• flooring
  • carpet
  • tile
• kitchen remodel;
  • counter top
    • granite
    • marble
• bathroom remodel
  • vanity
  • bathtub
  • shower
  • tile
    • ceramic
    • stone
    • glass
    • granite
    • marble
  • toilet
    • porcelain
    • float tank
      • ballcock diaphragm
      • float cup-fill valve
• landscaping
• electrical
  • telephone
  • cable
  • fiber optic
  • surveillance system
  • fire alarm
  • lighting
• drywall
  • gypsum
• natural gas line
• foundation
  • slab
  • footing
  • grading
  • soil condition
    • sandy
    • clay
    • slit
  • basement
  • crawl space
  • problems
    • cracks
    • sinking caused by uneven loads
• Heating Ventilation and Air Conditioning
  • air ducts
  • sheet metal
  • refrigerant
  • attic fan
• roofing
  • shingle
  • tile
    • terracotta
• doors
  • wood
  • plastic
• windows
  • screens
• garage door
  • garage spring
  • motor
  • remote control
• pest control
  • insecticides
    • termite
    • roaches
    • mice
    • ants
    • spiders
    • mold
    • mildew

• appliance
  • fridge
  • range
    • gas
    • electric
• water heater
• dishwasher

• fire code
  • shrubs
  • debris
  • exits

The historical cost basis and depreciation

• MACRS
  • schedule
• Straight Line Depreciation

Interest Rate

• variable
  • adjustable rate mortgage
• fixed
  • 30 year
  • 15 year
• fed interest rate
• treasury bond yield
• treasury bill

Rent vs Buy

• Renting
• Buying

Rental Income

• deduct interest
• expenses,
  • cost basis in the period incurred depreciation placed in service when you buy property and equipment and is ready to be used.

Neighborhood Crime Data

• Burglary
• Theft
• Manslaughter
• Larceny
• Accident

school rankings

• elementary school
• middle school
• high school

Transportation

• expense
  • gas
• commute time
  • traffic
• public transport
  • walk
  • bicycle
  • bus
  • train