bboyballer112 question : The Real Estate Investment
How do you justify a house if you are looking for a good investment? What are the variables occur? I am for pre-foreclosed homes and foreclosed looking for. In the analysis of property should I look? What constitutes a good business Best Answer:
reaction time of Christopher N
should read “Guide Weekend Millionaire Real Estate Investing” the. It is by far the best book of the easiest and suivre.Pensez that rent received, you can. Then subtract the costs of administration and maintanence fees, taxes, insurance and utility companies if you want to pay. What remains is your “net operating income.” That’s what you can afford monthly payments. If you get a loan if the payment or … is a good deal … mot.Ci the following link to Amazon and the book.
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LOCATION LOCATION LOCATION
That is the most important issue. Do not buy in a depressed area unless you can wait out the market fluctuations over the long haul. Buy only in a market on the upswing and desirable. Also buy on the best side of town. Where do most people want to live? Where would you live? If you would not live there, then dont buy there.
Then look at the price and add on the cost of all the repairs and the lost payments while it is empty and being fixed up or vacant while for sale. Many things need to be addressed to see what your profit margin is going to be. If the profit is under 20% it may not be worth your time and headaches. Remember, any investment is a RISK. It has to offset the risks involved.
Try to Find out what the last owner paid for the property (an agent can get this for you). Also get a market analysis and see what other properties like yours are selling for in this neighborhood. Take into account the conditon.
Are you doing all the work yourself? If not see what the repairs will cost and then figure them to be 15% higher. Bid can always be low and they always cost more. If you are doing the work, what would you get paid and then see if it is worth it. And while the property sits it is not generating any income so it will be a negative draw until it is sold or rented out.
A good deal is the home you can get that only needs minor cosmetics to re-sell. This home should be in a good neighborhood in demand. Dress it up, furnish it, and stage it to sell. Empty homes sit for long times on the market.
Or, rent it out and ask the homeowners to keep it nice and allow it to be shown for a reduced rent.
Right now is not really the best time to buy a property to flip. The market is down in most areas (not Seattle or San Antonio). And the demand has leveled off. It is a buyers market for the next few years.
Good Luck
The truth is, this answer is different for everyone. It all depends on what you are looking to do, your goals, your overall direction. I am an investment consultant for a national real estate investment firm. I’d be happy to help. When you need get your taxes done, you hire a professional to point you in the right direction. When you have legal issues, you hire a professional to point you in the right direction. Why would you try to take on the very difficult task of investing your money on yourself?
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