Investing in Real Estate can be risky if you do not have all the information needed to make a intelligent decision. What are some of the items you need to know before you invest in a property? Lets go over some of them. I do have an excellent course on investment real estate that gives you all the details I personally look at https://www.nextlevelpropertyinvestor.com/.
The big thing to remember is the location on of the property. You can get on Google Maps and get a good idea of the location and if you would want to live there. You always want properties that people want to live in, not ones that have to.
The amenities around the property will let you know what type of income most people make in each area. Starbucks. Trader Joe's and many other places do their homework to understand the income in each area they put stores in.
I remember a fast food chain called Carl's Jr which was taken to court by McDonald's because they where building new stores everywhere McDonald's did in their markets. Why did they do this? Because McDonald's pays a lot of money to research every area they put a store and get maximum profit.
You also need to look at the population in and around the city. More people the better, I like 1 million people or more. Bigger cities help keep prices down on repairs because of the competition in these cities. They also have a larger pool of potential tenants.
Make sure the rents are higher than the other areas and that the net monthly profit will be enough to address some repairs. For example I buy homes that start at $1050 and go all the way up to $1400 a month. The net profit for most of our properties after taxes, insurance and property management is $750 to $950 a month. You can check rents on Zillow, they seem to have the best reports. You can also call an Realtor to get better information.
Lastly you need to have very good property management for the life of your income asset. Me and Lori started our property management only because it was very difficult to keep rents coming in for clients with sub par property managers. Our property management Avalon Realty Group is solely owned by us and we have had almost no issues with collecting rent. Even through this Covid-19 our clients are receiving all their rent monthly.
The biggest risk in investing in Real Estate is bad locations and bad property management.
If you want to learn more about my Investment Real Estate Course please go to https://www.nextlevelpropertyinvestor.com/ or
Call me I'm Brett 216-703-5740 ICON Agent at EXP Realty Ohio or
Text "Success" to 1-937-500-0745
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Thank you