Investing in rental real estate is done for income, and that is just one issue that needs to be looked at. You want to be able to sell a property if you want and make money doing it. Understanding value and location is very important to a profitable out come.
When you are looking a multi family you need to look at the quality of tenant you will be leasing to. If the rents are low then you can predict what type of tenant you may have. Multi Family purchases should be purchased in areas that draw in quality tenants. For example if homes in the area are leasing for $1200 a month and the Multi-Family is getting $400 a door, you know that the tenants are going to be turning over a lot more at that price,
If the monthly lease amount is $800 a month, then that may be a different story. Most of the time the Multi-Family are smaller places and have limited parking. Basing the quality of tenants on the lease amount is a great way not to get bad real estate.
Homes are a bit easier, if the rent is low beware. You can do google maps of any areas and check out the vehicles and amenities that are around the property. Are there places that you would visit and more importantly the tenants would want to have near them.
As an investor you need to also know the pricing trend in the area to know that your investment will be worth more in the future. I have investors that come to me all the time that have purchased properties in seedy areas and cannot turn a profit. They sell the property for a big loss.
Just recently a investor called ma and wanted to sell their property in a seedy area. When I told them what we could sell it for they where in shock. The home needed a ton of money invested in it when we sold it they took a huge loss on the property, because they purchased in a area that was not a good resale area.
If you do your homework and know the areas you are buying the property in it will give you a good idea of what you can expect for income and profit.
I just created a course that will show you how to know the areas and there values. It is at www.nextlevelpropertyinvestor.com/
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Thank you