I get asked a lot of times about investment properties in Katy Texas. A lot of "investors" have not done their research though and do not understand that there are different types of investment properties and believe or not we have them all in Katy.
1. RENTAL PROPERTY These are properties that you are going to buy to hold long term and have people pay you rent to live there. I had someone ask me if there was a difference between a lease home and a rental home one time and of course, they are the same. A rental home SHOULD always have a lease in place on it when occupied. The lease outlines the terms of the agreement between the tenants and the landlord/landlady. A common term associated with RENTAL PROPERTIES is "CASH FLOW". Commonly you hear, "how much will it cashflow?" Cash flow is quite simply the difference between what it costs you as an investor to hold the property and what the tenants are paying. There are much more complicated formulas but that is a simple explanation. So if you pay out 700.00 a month on a home between mortgage, taxes, insurance and repairs and you have tenants in place paying 1000.00 a month, then you are cash flowing $300.00 a month.
2. FIX AND FLIP- The dreaded four letter "F" word! FLIP. This type of investment property can cause a lot of heartache! It can also end the owner in a RENTAL PROPERTY situation because they miscalculated the cost to FIX and there is nothing left to FLIP! There are two common main problems I see with investors that fix and flip: They either buy wrong or the fix wrong! Understanding your market is essential to fix and flip. It also takes a certain level of expertise in evaluating a property. While you might not want to be a licensed inspector, you might at least want to take the inspector classes so that you know what to look for. You make your money on the buy, not the sell!
3. COMMERCIAL PROPERTY- Commercial property takes many forms. You can be a land developer and build buildings. You can own commercial buildings. But it all comes back to selling the structure or renting the structure. For instance, our Keller Williams office recently was hired to find businesses to rent Villagio in Katy Texas. Now there are restaurants, clothing stores, book stores and even a dentist in there all paying rent for their space to the owner/developer of the center!
The Katy Agent Team works with a lot of investors, primarily in residential but also in commercial. We have helped many investors with their plan to use real estate to build their wealth.
Call (877)472-5390 and use the code to hear about the guarantee:
Easy Exit Listing Guarantee Code: 7003
$5000 Buyer Guarantee, Code: 7004
Your Home Sold in 29 Days GUARANTEED, Code: 7005