Investment Strategies in Today's Market for First Time Investors

Thinking about investing in todays real estate market but not sure were or how to start? The first step is to select the services of a knowledgable Realtor with hands on experience in this niche and market. Right now the best opportunities out there. The availability of foreclosures and inventory homes are up, interest rates are at historic lows, and sellers are motivated. This is the time that seasoned investors accumulate wealth, when the market presents opportunities such as the conditions we are seeing in todays market.

Here is a sample deal I put together for one of my clients. We located an investment property perfect for a first time investor deal. 3 bedroom, 2 bathroom, 2 story for $44,000.

Sale Price $44.000
Down Payment $9,000 (a little over 20%)
Financed Loan Amount: $35,000
Loan Term: 30 years fixed
Rate: 5.7%
Estimated Monthly Mortgage Payments $200 (not including taxes and insurance)

The property required minimal rennovations or repairs. Simple needed fresh paint, landscaping, and carpet cleaning since it was acquired in great condition. Improvements were less than $400 total.

The property can now be leased out for $800 per month creating monthly cash flow for my investor while gaining equity and appreciation in the property which was sold well below its value. Based on rental income only there is a 8% CAP, without appreciation and equity factored in.