Having the right people around you can make or break you. Their are good and bad people in every business. You need to make sure that your dealing with the good ones.
When you talk to a wholesaler,realtor,seller etc there are a few things you need to ask about so you know who your dealing with.
When you are buying a income home you need the following key issues addressed.
1. Rents in the area and where they got the comps from.
2.Your construction is the next issue. How will that be done, and how much is that going to cost you? How long will that take?
3 How will you rent the property? This needs to be selected before you start so you know the total cost of selling your property.
4. A management company that can handle all your future needs on that home.
All these numbers need to be at your fingertips before you make a decision on a property. People always blirt out numbers and they may or may not know what they're talking about. Always have all those numbers in writing and all your sales reports that show you what your property will sell for. The right people can give you all this information.
You need to have property management service. I know some people run their own rentals and that's fine, I'm just addressing people that don't. Good property management is very hard to find in most cases. I like for a property management to have a full time maintenance staff, this usually is a lot less expensive in the long run. Also I would call a few of their clients to see what they think of the service. One last thing to verify rents run a fake craigslist ad. This will tell you how much rent you can expect.
I had a client who had purchased some properties in questionable areas, they are really paying for that now. Short term tenants can cost a investor a lot of money. When you are dealing with low cost homes, they usually have lower rents and more maintenance. I know this after doing 100's of properties myself.
Having the correct asset that is in a good area makes all the difference in the world to your pocket book. The rents are better, maintenance is lower, and tenants do not tend to leave, and they pay their rent.
That is what you want in a property plus capturing equity during the time you own the property. That will get your pockets really full in the right places.
As you can see their is a lot of information you need to make an educated decision on ant income property. When you spending your hard earned money make sure you have all the information you need to make a sound decision.
As you can see getting the right people around you will maximize your profit on each
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Thank you