ABCs of Real Estate Investing

Welcome to my ABCs of Real Estate Investing book summary!

One-Sentence-Summary: Short 220-page book providing valuable insights for new real estate investors.

booboo real-time book rating: ★★★★☆ (percentage of books with this rating: 34%)

• When doing business with others (landscapers, repairmen, etc.) do it under the name of the LLC. This doesn’t guarantee that someone won’t come after your personal assets, but it might offer some protection (honestly, this advice rubs me the wrong way. ‘hey, do all this extra work just incase, maybe the future, it might potentially help ya out!’)
• Conduct an annual meeting for LLCs even if the state doesn’t require one
• You can borrow from your retirement funds $50k or 50% of the value, whichever is smaller.
• Ask if the seller’s mortgage can be assumed.
• Don’t take an inspector recommendation from the RE agent because the issues may not be prioritized to the agent gets the sale. A good inspector will cost $500+
• Due diligence checklist
  • Exterior Inspection
  • Intereior Inspection
  • Government Agency Reviews (to ensure structure is compliant with standards)
  • Service Agreement Reviews
  • The File Audit (if there are current rental agreements with tenants)
• 5 Golden Rules of Property Management
  • Maintain Your Property (reduce risk of lawsuits)
  • Always to background checks on tenants
  • Use a legally valid lease
  • Treat tenants with respect but be firm
  • Respect and enforce tenant/landlord laws
• “Start-up costs are depreciated over fifteen years; however, the law gives new rental businesses a break: You can deduct up to $5,000. Anything over that amount must be depreciated.” (p. 124)
• Remodeling expenses can be depreciated over 27.5 years. But repairs can be fully deducted.
• Ensure your property taxes are in line with other recently sold homes in your area. If you’re paying 20% more, you can file an appeal with the property tax assessing authority.

As I read the book, you will find my in-progress Influencing review and book summary notes below.

You are reading my book review and summary by Ken McElroy. Be sure to check out my digital bookshelf for 100+ book summaries.

Did you know I’m an author? I wrote four books on real estate investing, travel, and language learning.

Thanks for visiting and thanks to Ken McElroy for writing ABCs of Real Estate Investing!