Thinking about making a rental investment property purchase? Investing in real estate can be very exciting but also very nerve wrecking. Most investors act too quickly or not quickly enough on a potential purchase leaving themselves in a bad situation or without ever securing a deal. Before you submit an offer on the property ask yourself the following questions.
Is this property right for me and my investment needs? What are my short and long term investing goals?
Is this the right property for my risk tolerance? Do I have cash in the bank if things don’t go exactly as planned?
What is the structure of this property? What is the tenant makeup of the building? Will I manage myself or should I hire out?
What are the conditions of the properties big ticket items? Roof – Windows – Heating – Foundation – Plumbing – Electrical?
What are the buildings expenses to operate? What income does the building produce? Whats the return on my investment?
Your answers to these question will provide you with a good feel for the property, your financial situation and hopefully give you a very quick yes or no as to your decision to move forward. It’s also a good ideas to visit each potential purchase with your real estate agent as well as your handy man. These two team members should be best equip to help you make a sound investment decision.
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