Investment real estate offers several different returns to a purchaser. As far as the IRS is concerned as long as you aren’t living in a property as your personal residence you can call it an investment property. The following is a list of those returns;
As in any investment, the availability of capital (that is, money) limits the size of your investment. The capital to purchase property traditionally comes from two sources: (1) the investor and (2) the lending market. The first source of capital is the investor. When property is purchased this capital is called the “down payment.” Down payments generally range from 10% to 30%. Therefore, the amount of money available to the investor limits the size of the property he can purchase.