Everyday more and more investors are calling looking to purchase properties to buy and rent out. It is now finally possible to do this and have a positive cash flow. However, even in this market there are some very important factors to consider:
- What are current taxes? Two almost identical properties in the same neighborhood at the same list price can cash flow in very different ways. One might have 2008 taxes at $5000, while the other has a bill of $2500 or even less. It depends on a lot of things, such as when was the property last sold or transferred, how long the current owner has held property, etc.
- For invetors or people thinking of investing there are 2 types of financing that are normally used, either traditional investment property financing or hard equity lending. With regular financing a downpayment of at least 20% will be required in most cases. With hard equity lending, as long as the lender approves the property all you do is pay 30-50% down payment and they ask no questions. Of course your cash flow will be much greater if you put a hefty amount down or pay all cash. Then all that's left is property taxes and association/maintenance fees if required.
So if you are thinking about putting a toe in the water, just shoot me an email or call anytime. I'll be glad to answer all of your questions. Thanks for reading.
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