Answering these questions can give you a good start and understanding of the type of property you may want to look for. Tip : Another important aspect of investing is remaining aware of the market (while remembering it can be unpredictable). Do your research to learn about property values in different areas, including why they’ve gone up or down. If there’s been a positive change in the area, this could be a good place to buy. However, you also need to look at the market as a whole. If it’s going up, it can also go down. Keeping up with both local and national trends can help you make better investment decisions.
ANALYZING A PROPERTY
Once you know the target area you want to buy in, its time to start making offers. Once you get an offer accepted, it's time to really analyze the deal and run your numbers. First, you need to conduct a comparative market analysis of the amount you can expect to get in rent for the property you are under contract for. If you know you are going to be using a property manager, call them and ask what amount the house you are analyzing could rent out for in a WEEK or less. You don't want the property to sit for months vacant just to get a little higher rent. Having your property filled quickly with a good tenant is key. Once you’ve determined the price at which you could rent the property out for quickly, its time to move to the next step: calculating your potential expenses. Be sure you don't miss this step, as knowing what your expenses are going to be can make or break a deal! The potential expenses include estimating monthly mortgage payments, insurance,
79
Powered by FlippingBook