How to reduce your Monthly Mortgage for you’re newly Purchased Property

Flamenco Building , Bluff park LB 

A strategy home buyer can choose to reduce his / her mortgage is to purchase an income property. Can be a duplex or up to four units property. You can live in one and rent the others. Tenant pays part or in some cases all of your mortgage. here is Pro and con of the process.

• Pro: Leverage, The purchase of an investment property can be financed, reducing the upfront cost to buy the a property.
• Pro: Income Plus Appreciation, Rental property provides investors with a steady stream of income from rental checks. also benefit from the appreciation of a property's value.
• Pro: Tax Advantages, A real estate investor can also avoid the capital gains taxes on an investment property by exchanging the property for another investment property. Process called 1031 exchange. 
• Con: Vacancy & Bad Tenant, A bad tenant can lead to more problems than no tenant at all. Tenant selection is a very important consideration for rental property owners. Rate of Vacancy must be consider during property evaluation.
• Con: Excessive Repairs, Homes need both ongoing maintenance and at times major repairs. A rental home investor should have an emergency fund set aside to pay for unexpected expenses.
• Con: Larger Down payment, for income properties, most lender requires larger down payment 20% or more.