There are a few things investors should always bear in mind when considering whether to jump into the cash flow property
investment game. When you look at cash flow positive rental homes it is not a lot different than buying regular property as far as the location. It really is ALL about location. If you buy a house to use for cash flow then here are a few things to really pay CLOSE attention to . . .
1--Is the VALUE of the house or the comps at least 10-15% higher than what you are paying for it? what is the value and condition of the other homes in the neighborhood? and what is the overall condition and PERCEPTION of the neighborhood. If you invest in a cash flow home in an area that is perceived to be dangerous or higher crime area then it will be very difficult to rent. Brokers and agents won't like this but it is better to buy direct from a supply side wholesaler a company like InLaw Investments, Inc. You get a better price buying wholesale obviously there is not agent/agency commissions to pay.
2--Know that rental homes in nicer neighborhoods with decent schools will attract young families already working or starting their careers. This type of tenant usually stays longer than a student or a single person. This means way less turnover.
3--Understand that once you purchase things can and will go wrong---the home you are investing in obviously is NOT new and even if it is a recently fresh rehab still until someone lives there for a week or two and flushes all the toilets and uses the lights/plugins a couple hundred times etc. then you find out. So really it is important that whatever group you are purchasing this investment home from has a warranty in writing of some kind. It is recommended to find a property with a minimum of a 6 month written warranty. Now its not a huge deal if you have to replace a sink or a faucet or something---but what if your tenant moves in and finds out the first month the home needs a new roof? A warranty would take care of this.
Elite Wealth Creators have been involved in the property and finance industry for over 20 years. Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance
http://www.
sales@elitewealthcreators.com
1800 GO ELITE
investment game. When you look at cash flow positive rental homes it is not a lot different than buying regular property as far as the location. It really is ALL about location. If you buy a house to use for cash flow then here are a few things to really pay CLOSE attention to . . .
1--Is the VALUE of the house or the comps at least 10-15% higher than what you are paying for it? what is the value and condition of the other homes in the neighborhood? and what is the overall condition and PERCEPTION of the neighborhood. If you invest in a cash flow home in an area that is perceived to be dangerous or higher crime area then it will be very difficult to rent. Brokers and agents won't like this but it is better to buy direct from a supply side wholesaler a company like InLaw Investments, Inc. You get a better price buying wholesale obviously there is not agent/agency commissions to pay.
2--Know that rental homes in nicer neighborhoods with decent schools will attract young families already working or starting their careers. This type of tenant usually stays longer than a student or a single person. This means way less turnover.
3--Understand that once you purchase things can and will go wrong---the home you are investing in obviously is NOT new and even if it is a recently fresh rehab still until someone lives there for a week or two and flushes all the toilets and uses the lights/plugins a couple hundred times etc. then you find out. So really it is important that whatever group you are purchasing this investment home from has a warranty in writing of some kind. It is recommended to find a property with a minimum of a 6 month written warranty. Now its not a huge deal if you have to replace a sink or a faucet or something---but what if your tenant moves in and finds out the first month the home needs a new roof? A warranty would take care of this.
Elite Wealth Creators have been involved in the property and finance industry for over 20 years. Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance
http://www.
sales@elitewealthcreators.com
1800 GO ELITE
No comments:
Post a Comment