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However, with great property comes great responsibility, including the inevitable propertytaxes that can significantly impact your bottom line. Understanding the nuances of commercial real estate appraisal is key to navigating these waters and potentially reducing your commercial propertytaxes. is the first step.
Two residences means two mortgage payments and two sets of propertytaxes. Buying a second property can stretch your budget depending on your current income and obligations. Also, consider the effort involved in renting the property. A propertymanagement company can look after the house if you plan on renting it out.
In addition, lease payments are qualified operating expenses so they reduce the company’s taxable income and leasing relieves the company of the burden of propertymanagement and does not tie up capital that could be otherwise used to fund growth. Let’s start with a review of the lease cash flows.
You handle (or outsource) all the operational responsibilities, from financing to leasing and propertymanagement. Individual Ownership Greatest control over propertymanagement, renovations, and tenant selection. Highly liquid, easy entry and exit, but share prices can track the broader stock market.
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