Investing in real estate is an attractive option for many people looking to build wealth and generate passive income. An increasingly popular form of real estate investment is owner-occupied, or “buy-to-live” investments. This type of investment involves buying a property that you will live in while also using it as an income stream by renting out rooms or entire units within the property. Owner-occupied investments offer several advantages over traditional rental properties, including tax benefits, greater control over tenants, and more flexibility with financing options.

Tax Advantages

One of the major advantages of owner-occupied investments is that they can provide significant tax benefits. The government offers a variety of deductions and credits to owners who rent out part or all of their property, such as depreciation on the cost of the home, interest paid on mortgage loans, and repair and maintenance expenses. Property taxes may also be deductible in some cases. In addition, owners of owner-occupied properties may be eligible for reduced capital gains taxes when they sell the property, depending on their situation.

More Control Over Tenants

When it comes to tenants, owner-occupied investments provide greater control over who lives in your building. As an owner-occupier, you can screen potential tenants carefully and choose those who meet your desired criteria, as well as set rules to ensure the property is maintained in good condition. This type of investment also allows for more flexibility with financing options since you can use a combination of conventional loans and owner-financing strategies to purchase the building.

Steady and Consistent Income

Finally, owning an owner-occupied property can provide a steady source of income while also increasing the value of your property. Since you are living in the property, your mortgage payments are likely to be lower than what they would be on a traditional rental property. Furthermore, rents received from tenants will help cover some or all your other expenses, such as mortgage payments, taxes, and repairs. Over time, this can lead to an increase in the value of your property, which can be beneficial when it comes time to sell. Contact K2 Capital today to get the funding you need for your owner-occupied properties.