With real estate prices holding at a low level, mortgage rates at all time lows and rents climbing, real estate investments are becoming more and more attractive for healthcare professionals like you. If you decide to invest in a commercial building or additional residential properties, whether it’s the beach house you've always wanted or passive income properties, now would be a great time to invest!
As with any other investment, you will need to consider the advantages and disadvantages of a real estate investment. As long as you have an excellent asset management service and apply due diligence, you can achieve double-digit returns between appreciation, principal payment and cash flow.
If you have steady cash flow and savings, you may want to consider buying the building where you house your operations, if you have not done so already. Some advantages for this are predictable payments by locking in the costs with a long-term mortgage, flexibility with interior design, possibility of renting to other tenants to increase cash flow, tax savings you receive from deducting your mortgage interest and property taxes and potential for equity build-up and/or rental income. Owning your own building can be satisfying from many perspectives, offering both financial advantages and personal rewards.
Below are some important factors that should be considered when investing in commercial properties:
- Assessing the condition & of the property
- Checking the zoning laws to find out what type of businesses are allowed & if expanding the building is possible
- Accessibility & parking are very important & should be forward-thinking
- Beware of the environmental issues
Whether your choice is residential or commercial, the team at MDcpas can help you with the following:
- Acquisition due diligence & investment financing strategy
- Entity selection
- Cash flow modeling
- Customized spreadsheets & databases
- General ledger maintenance, invoice processing & bank reconciliations
- Accounting department development
- Training & oversight of accounting personnel
- Interim staffing requirements through CFO
- Track partner contributions & distributions
- Lease consulting
- Depreciation & cost segregation analysis
- Federal & state tax preparation
- Exit strategies
If you either plan to invest in a residential (summer property) or commercial real estate property, you will always have to focus on your return on investment. Therefore, financial ratios such as net rental income, net rental yield and capitalization rate are very important.
With our help, you can maximize your yield on your investments by accelerated depreciation and many other strategies, including appropriate borrowing structures.
For more information and to find out how we can help you achieve your goals, call us at (800) 477-5857 or fill out the FREE consultation form today! We serve the communities of Manhattan, New Hyde Park, Manhasset, Hauppauge, Syosset, New York, Garden City, Great Neck and nearby areas.
