How I’m Buying an Investment Property Right Now
August 26, 2025
✨ Rates are high. Rents are down. And guess what? I’m STILL buying real estate. 🏡💼
Key Steps in Your Strategy:
Selling an Existing Property:
Selling an Existing Property:
- Selling a property to the City of Bonita Springs.
- Using a 1031 Exchange:
- Avoid paying capital gains taxes
- Sale proceeds go to a qualified intermediary (money is held and not touched).
- All proceeds are reinvested into a new property.
Purchasing a New Investment Property:
- Property will be used as a short-term rental (Airbnb).
- Already under contract for purchase.
Cost Segregation Analysis:
- Breaks property into land value and building value.
- Accelerates depreciation of building components.
- Bonus depreciation allows large deductions in the first year instead of spreading over 27.5 years.
- Deducts against W2 earned income because you and your wife qualify as real estate professionals.
Tax Benefits Highlighted:
- Avoid capital gains on sale due to 1031 exchange.
- First-year deductions via cost segregation could be around $100,000 or more.
- Potentially huge tax savings, even if cash flow isn’t high (though in this case, cash flow is positive)
Advice to Buyers:
- Work with a knowledgeable realtor and lender.
- Understand tax benefits of real estate investing.
- Buying now can make sense even with high rates and slightly lower rents.
Takeaways / Actionable Insights:
- 1031 Exchange: Reinvest profits to defer capital gains.
- Cost Segregation: Accelerates depreciation for larger upfront tax deductions.
- Real Estate Professional Status: Maximizes tax benefits by offsetting earned income.
- Cash Flow vs Tax Strategy: Even if immediate cash flow is modest, tax benefits can make the investment profitable.
- Practical Tip: Buyers should always coordinate with both their realtor and lender on these strategies.
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It is a fair question. Buying a home is a big decision, and nobody wants to feel like they moved too soon, waited too long, or missed the better opportunity.
But here is the truth: there is not one perfect answer that fits every buyer.
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For decades, most mortgage lending has relied on Classic FICO.
Classic FICO gives lenders a snapshot of your credit at one point in time. It looks at things like payment history, balances, length of credit, credit mix, and recent credit activity.
Many homeowners feel stuck.
On one hand, you may have a mortgage rate that’s far lower than today’s market rates. Giving that up can feel like a mistake.
📉 Buy Investment Property Without Showing Income
Homeownership is not just about getting the keys.
It is about caring for the place you live, protecting the investment you made, and making smart financial decisions along the way. At NEO Home Loans, we believe successful homeownership is built one month at a time through education, planning, and proactive support.
Do we make an offer and hope everything works out?
Do we wait and risk losing the home?
Do we rush our current home onto the market?
Unfortunately, this is where many homeowners find themselves.
Nobody wants to feel like they bought at the “wrong time.” Especially after watching headlines bounce between “housing crash,” “record prices,” and “rates are too high.”
If you’re thinking about moving, you’ve probably run into this problem:
You want to buy your next home…
But you feel like you have to sell your current one first.
