Real Estate investment opportunities may be on the rise, perhaps not immediately, but in the next two years or so. Why? There are tell-tale signs to the effect that the foreclosure outlook is “positive”, albeit sadly that is not a good forecast for those who might be affected. Regrettably, the current “easy mortgage” environment is one such indicator and once again the victims may be caught unaware… and others may be gaming the system… also once again.
Many lenders proudly proclaim that they can now underwrite mortgages with very low down payments, in the order or 3.5%, or even “zero down” alongside (11 comments)
In an earlier post, we discussed very basic methodology for analyzing potential investment properties, where Net Income was a rough estimate that included annual rent only. This is mostly useful for comparison purposes prior to purchasing, or when details of expenses are simply not available.
The cost of running and maintaining an investment property will clearly affect the profit derived from it. To arrive at a more meaningful Net Income calculation, one needs to determine to the extent possible the details regarding the expense of operating a particular building. (4 comments)
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Olga Simoncelli
CONSULTANT, Real Estate Services & Risk Management