Unlock the Potential of Investing in Real Estate

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Have you ever thought about owning an investment property? I’m covering everything to know regarding investing in real estate, including the different options and how to make it happen.

You’ll also get a complete rundown on why investing in a rental property can boost your finances, the tax benefits, plus what you need to know about being a landlord, how you can best flip the right property for a profit, an investment strategy for move-up homeowners, and how you can save money when it comes time to sell an investment property.

If you find yourself with some extra savings, are looking to diversify your investment portfolio, or want to create passive income, then it might be a good idea to take a closer look at what real estate can do for you and your finances.

There are several reasons why investing in real estate can help your finances in the short and long run. Plus, you can still keep your day job and let this “side business” help you prosper even more with some additional income! 

Take a look at what you can gain from an investment property:

Tax Benefits for Landlords

Many residential rental home expenses are tax deductible. That means you’ll have more money in your pocket despite the costs of running a rental property. Remember to keep all receipts and ask your accountant how you can maximize your tax benefits!

Those who make real estate investing their livelihood and their primary source of income will find additional deductions and tax benefits for their properties. 

However, we’re focusing on those of you who want to do this on the side. Remember to consult with a professional tax consultant who specializes in real estate.

Here are a few of the most popular deductions for part-time investors:

• Deduct the costs associated with regular maintenance. This includes landscaping, pest control, cleaning, etc. That means you can also write off the costs of smoke detectors, HVAC filters, yard tools, professional services that help with maintenance, and other related upkeep costs. Just remember that it’s anything non-repair related to keep the property functioning.

• Deduct the costs for home repairs or items to be repaired. If the roof leaks or an appliance breaks, you’ll know you can deduct the payments for these repairs.

• Deduct professional services that help with managing your property. As a landlord, you’ll need services for accounting, legal work, marketing/advertising, taxes, and more. You can even write off the cost of running a credit report for potential tenants!

• Deduct loan interest on a mortgage for a rental property. This is a biggie! You can even deduct the interest you pay on a credit card used for your rental property for repairs or purchasing supplies.

• Deduct travel expenses related to your property. Keep track of mileage for any travel you may have to take to maintain and repair your rental property. And airfare, gas, or hotel costs can be deducted too. Make sure you document this carefully for the IRS.

• Deduct insurance premiums associated with your rental property. You’ll need to buy insurance policies such as homeowners, fire, flood, mortgage, theft, and general liability. All premiums can be deducted.

Build Wealth Without Quitting Your Day Job

The big draw for investing in residential real estate is making more money and building wealth without quitting your day job. Right?!

Although just like everything in life, there are no guarantees, especially if you make a mistake (which can happen if you don’t have an expert agent on your side, hint, hint!).

Here are two ways a rental property can build wealth:

• Others pay down your mortgage. Most likely, you’ll have a mortgage on a rental property, and that’s where having tenants can offset the cost of that property’s monthly mortgage payments. If you do the math correctly and have a viable property, you’ll easily cover the mortgage costs and other expenses for your Rental. 

• The Rental produces income. Again, if you do the math correctly, you should profit from a rental. You don’t want it to be a drain on your finances. To get some positive cash flow, you’ll need to consider your expected rental income and subtract all your expenses for the Rental, including a vacancy and maintenance allowance. 

Today’s article begins my six-part series on investing in real estate. Here are the topics this series will cover in the weeks ahead:

Buying a Rental Property 101 – This article will cover the different types of rental options—standard 12-month lease, vacation home, Airbnb or Vrbo-type properties, and more. You’ll learn what you need to consider when buying a home you plan to rent, including selecting the right property, understanding the costs and return on investment expectations, and becoming familiar with financing requirements for non-primary residences.

What to Know About Being a Landlord – This article will review everything a landlord of a rental property is responsible for when it comes to finding tenants, maintenance of the property, deciding on whether to hire a property management company and all the legal requirements such as local and state landlord-tenant laws and more.

Buying a Property to Fix and Sell — This article is perfect for those who want to flip properties for a profit. You’ll understand the ins and outs of finding a “good deal” when buying a home, treading carefully when it comes to extreme fixer-uppers, and working with an agent and lender so you don’t overpay and you get the financing you need.

A Move-Up Investment Strategy that Works – This article shares my favorite real estate investment strategy, and you’ll see why! You’ll find out how to buy a home and then move up to a new one while keeping your other one as a rental. It’s not for everyone, but when it works, it’s an excellent way to make extra money on a home.

How to Save Money When You Sell an Investment Property – This article will cover what you need to know when you sell an investment property. It will cover 1031 exchanges, ways to defer taxes without using a 1031 exchange, and other strategies that will make it a smooth process.

Reach Out for Help

If you or anyone you know has been thinking about buying an investment property or has one to sell, I’d love to help.  


I'm Tehane, a local realtor helping locals buy, sell, and stay local in Honolulu  Schedule a conversationand let's talk about your current situation and where you want to be. Then, let's create a plan to get you there.  Every journey begins with the first step! 



BHGRE Advantage Realty
4211 Waialae Avenue, Box 9050
Honolulu, HI. 96816



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Let's connect


I'm Tehane, a local realtor helping locals buy, sell, and stay local in Honolulu. Schedule a conversation, and let's talk about your current situation and where you want to be. Then, let's create a plan to get you there. Every journey begins with the first step!   

Let's connect 

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