"“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.” Andrew Carnegie"
Whatever you want out of life you need to have money to do it and real estate may be a great way to get that money. I have personally did income real estate since 1985 and have learned all the different ways to look at an asset. This article really points it all out.
"Location: Yes, you can say it three times, as real estate is all about location. You wouldn't want to rent a home in the middle of a supermarket parking lot, but one near a green belt or park for your children could be just right.
"Rentability: Location is a part of this factor. However, if a home is in a great location, but the competition is stiff, it may not be the best investment. When there are many rentals available and owners are offering incentives, it may not be the right time. When there are few rentals available, not only are you able to keep a property occupied better, you can demand higher rents at the same time."
"Expenses: This is relative, as property taxes are a major expense, but some areas command high rents because of the area amenities, so taxes are higher as well. If you can offset expenses with monthly cash flow left over, then it's a positive."
"Appreciation: Though cash flow is the primary consideration, appreciation in value over time is important. There are two ways in which you build equity in a rental property, appreciation in value and paying down the mortgage. Intelligent leveraging of your investments can be used to grow your portfolio using the equity in owned properties."
These are the huge factors in knowing if you should purchase a asset. You need all these key elements need to be in your property for you to be successful for you.
Homes also need to be done right in rehab in order to get the top rent. That cost of course needs to be reflected before you purchase an asset. Inspections are also a great way to learn about a property. Look at what potential tenants are saying about our product.
Not every home makes money, and all of these 4 items need to be addressed. Investors get in a hurry and just look at the potential net returns, instead of looking at the whole picture.
Lastly make sure that you get a good management company if you are not running the property yourself. That is crucial to your success, we have a great Property Management company that we work with. They handle all the aspects of running a property after the purchase.
Need Real Estate that fits your lifestyle? Call me I've done 100's of homes and I can find one for you. 216-703-5740 EXP Realty Ohio and 602-363-6551 EXP Realty Arizona 1000+ properties and counting
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Thank you