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The "I" in IDEAL stands for Income.

Your investment property should

be generating income from rents

received each month. Of course,

there will be months where you

may experience a vacancy, but for

the most part your investment will

be producing an

income.

The D in IDEAL Stands for

Depreciation. With investment

real estate, you are able to utilize

its depreciation for your own tax

benefit. It's a non-cost accounting

method to take into account the

overall financial burden incurred

through real estate investment.

The "E" in IDEAL is for Expenses -

Generally, all expenses incurred

relating to the property are

deductible when it comes to your

investment property. The cost for

utilities, the cost for insurance, the

mortgage, and the interest and

property taxes you pay.

The "A" in IDEAL is for Appreciation -

Appreciation means the growth of value

of the underlying investment.

It's one of the main reasons that we

invest in the first place, and it's a

powerful way to grow your net worth.

The "L" in IDEAL stands for

Leverage. This is when you are

using a small amount of your

money to control a much more

expensive asset. You are

essentially leveraging your

down payment and gaining

control of an asset that you

would normally not be able to

purchase without the loan

itself.