There are several things to consider once you have made the decision to invest in real estate. The most important thing you can do is find a real estate agent that know about investing. Most Realtors who do not deal in investment property think that if the rent is more than the payment it is a good deal. Not True! There are many factors to consider when looking at an investment property on paper. First is your payment. If you are financing you will have a payment. Then add in you taxes and insurance. Most commercial loans do not escrow these. Maintenance cost are another biggy. If the property is not new you will have maintenance. Even if they are new you will have to keep the yard up, you will have to change air filters in ac units (renters never do this so you have to), you have to spray for pests so there are lots of things to think about. You may also want to hire a management company. Rentals can be very labor intensive. So give thought to all these and find a realtor knows what they are doing when it comes to investment property.

 

 

 

1 Comments on Real estate investing.

DEC
12
2007
112,341 Points Outside Blog

Hi Jeff,

You are so right.  Investors often forget or don't realize that commercial property is valued based on cash flow and not emotion like residential property.

10:35pm • #1

Leave a response…



(optional)
What does the graphic say?
 
Rainmaker_large

Jeff Fulgham Broker E-Pro ABR

Tupelo, MS

More about me…

T.U.P. Realty

Address: 2202 West Main Street, Tupelo, MS, 38801

Office Phone: (662) 823-4780

Cell Phone: (662) 322-5674

Email Me


ActiveRain.com
<!-- SiteSearch Google --> Get great free widgets at Widgetbox!


Links

Archives

RSS 2.0 Feed for this blog

Find MS real estate agents and Tupelo real estate on ActiveRain.