You work full time, but you keep hearing you can make large sums of money flipping houses. How hard could it be? Buy property, fix property, sell property. Even if these steps are time consuming, the payday at the end makes up for it. Right? How much house flipping profit can you expect?
I’m always shocked when I’m chatting with an established real estate investor and the conversation takes an unexpected turn.
Social interactions aren’t my strong suit, no new information there.
What’s supposed to be surprising is the number of real estate investors who don’t understand depreciation. Their approach is: buy property, make money, dump receipts on accountant’s desk and receive tax return.
I recognize that while I don’t have a degree in accounting or finance, my current and former careers forced me to learn about those subjects. Not everyone has that luxury.
So, I thought I’d take a crack at explaining the basics of depreciation…with comics.