What are the tax implications of investing in real estate?

The age of a property can significantly affect its investment potential. Older properties may have more character and charm, but they may also require more maintenance and repairs, which can eat into your profits. On the other hand, newer properties may be more expensive to purchase, but they may also attract higher rents and require less maintenance. However, the location, condition, and market demand for a property can often be more important factors in its investment potential than its age.

Legal considerations when investing in real estate include understanding property laws, zoning laws, tax laws, and any potential legal disputes related to the property. It's also important to consider the legal aspects of any contracts involved in the purchase, such as the purchase agreement, mortgage agreement, and any lease agreements if the property will be rented out.

To reduce expenses associated with a multifamily property, one can consider strategies such as efficient property management, regular maintenance to avoid costly repairs, implementing energy-saving measures, and possibly renegotiating contracts with service providers.