We are going to make a bold prediction (though with Minnesota, it could be more of a gamble). The snow is behind us! And while spring formally started on March 20th, it seems to have finally sprung.

Timing, Inventory, and Rates

Like trees beginning to bud in our yard, home buyers are scheduling time with their realtors to tour homes and neighborhoods. As we have discussed before, the inventory for homes is declining. Now is the perfect time to list your home if you are looking to sell. Due to the recent trend of rising interest rates for buyers, time could be of the essence as borrowing power decreases.

Freddie Mac, 30-Year Fixed Rate Mortgage average in the United States [MORTGAGE30US], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/MORTGAGE30US, April 24, 3018

What’s more, many families with school-aged children will use the next 2-3 months for home tours and purchasing, settling in before the next school year begins. If you own in a highly desired school district, this makes your home even more valuable.

Spring has kicked off another buying cycle with increased competition, bidding wars, quick sales, and above average sale prices.

Days on Market Until Sale

Get Moving!

Getting your home on the market couldn’t be easier with the team at Patriot Realty on your side. We have the tools and expertise to help prep, stage, and list your home with increased selling success. To get started, either reach out to us to start a dialogue or download our simple seller checklist.

It’s that time of year again.

Everyone is pulling together all of the information needed to (hopefully) maximize their tax return. Adding an investment in rental real estate can help with that maximization when Uncle Sam comes knocking. In addition to the cash flow and historic trends of property value appreciation, there are many other tax benefits and deductions that often come with rental ownership. Here is a high-level overview of some of the most common topics.


For those new to this term, depreciation is defined as the reduction in the value of an asset with the passage of time, which is a way to recuperate some of your initial costs from a property purchase when you file your return. According to the most recent IRS Publication 946 (PDF), properties can be depreciated over a set amount of time, determined by property type – nonresidential (39 years) or residential rental (27.5 years). For example, you would first separate the cost of the land from the building(s), as you cannot depreciate the cost of land. Using the straight-line depreciation method, divide the building value by 27.5 to arrive at your yearly depreciation deduction.

Principal Reduction

Principal reduction is the process of paying off a loan over time. While not exactly a tax benefit, your tenants assist in paying down the balance of the mortgage by paying rent each month. With rental income going to pay the principal balance each month, this effectively raises your equity in the property. This can be visualized in an amortization schedule.

Interest Deductions

On your Schedule E, the largest deduction for a rental property owner is often the mortgage interest for the rental property. Other interest expenses can also be deducted, and speaking with your CPA can ensure that you understand the details of what can be deducted to ensure you are maximizing any/all tax benefits.

Other Deductions

Other items you can deduct as a landlord include:

  • Insurance payments
  • Utilities
  • Repairs
    • Not to be confused with improvements. Improvements must be depreciated at the same rate as your property type.
  • Local travel
  • Taxes
  • And more


Owning and maintaining a rental property can be a very rewarding endeavor. Also, if done correctly, it can be a great way to not only make some extra money, but also provide some year-end tax benefits. As always, please reach out to the team at Patriot Realty if you have interest in discussing investment real estate opportunities.

* The Patriot Realty and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.


Data Derivatives…

On its surface, the idea of data analysis is fairly dull. Pouring over lines of numbers and percentages in an Excel spreadsheet doesn’t send too many people’s hearts aflutter. That said, the value of data and what can be derived from it is only becoming more valuable. Predictive analytics from big data analysis is driving not only how companies do business and the government functions, but also how people research, analyze, and decide to buy different products and services.

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Patriot Realty salutes our heroes of past and present – the Veterans! Best wishes for Veterans Day!

Finding the right lender is as important as finding the right home

Looking for your next home can be an exciting process, but finding the money to afford that new home may not be so exciting. Very few people have enough money on hand to buy a house with “cash,” so you will likely need to finance the purchase with a home loan. It’s highly recommended that even before you start your home search, you should find the right lender that can work with you to become “pre-approved” for a loan to buy your ideal home. With quality home inventory under $600,000 being very low and selling really quickly because of the high buyer demand, having your finances in order before you set out on your house hunt will give you an edge over other buyers.

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hunting for your next house?

It can be exhausting hunting for your next house, not to mention trying to decide which app or website to use. While these apps and websites are often easy and convenient, it seems like every year the number of these sites and apps grows exponentially, making the decision of where to start your search and knowing what information to trust even more difficult.

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The market is difficult for buyers

With quality inventory under $600,000 being very low, and with buyer demand at an all time high since the market crash, you may see and hear that some buyers are struggling to find success in the home buying process. Continue reading ..