Every new investor in real estate should ask themselves these questions.
Real estate is one of the best ways to build wealth and create a legacy that you can continue on for your family. Have you ever thought about purchasing an investment property but don’t know where to start? Today I’ll go through some questions that you should ask yourself.
“Failure to plan for negative cash flows correctly is the most common reason for failed investments.”
What does purchasing an investment property mean to you? Are you looking for something that will create cash flow immediately or a property that will have good appreciation over time? Where do you want to invest? Would you like to purchase a single-family condo, or a duplex, locally or farther away? Do you want a long-term tenant or do you want to rent something out seasonally that you can use yourself from time to time? What do you know about renting a property? Do you want to manage the property yourself? These are just a few questions to ask yourself.
Have you thought about how to finance it? How much money do you want to use as a down payment? Can you sustain the payment if for some reason you can’t rent it or the rent doesn’t cover the expenses? If the market does turn, make sure you can afford not to sell. Failure to plan for negative cash flows correctly is the most common reason for failed investments.
If these questions have piqued your interest, please reach out to us by phone or email so we can discuss this further. We look forward to hearing from you.