“Investment Property When the Math Doesn’t Work”
Joe does an incredible job of giving real questions in regards to investing in property. There are many more questions that you should ask too! Make sure that you find an agent that knows how to work with investors! I have worked with several investors and would be happy to discuss any questions.
“Investment Property When the Math Doesn’t Work”
What is a reasonable return on your investment? Sure it depends on what part of the country. Would it be fair to get a 6% return on your investment, plus the deductions, including interest?Many clients come to me to discuss buying an investment property. It is always a concern when they have no experience. I ask them many questions and as a result of my questions, so choose not to invest.1) Why do you want to buy an investment property?2) How much money do you have available to put down?3) Have you thought about how many units?4) Will you handle the management and renting?5) How will repairs be handled, can you do them or do you need to hire trades people.6) Can you afford to carry the debt if an eviction is necessary or there are just vacancies?7) There are many more import questions, but you get the idea.Client of mine wanted meet to discuss their interest in buying a multifamily home. A neighbor offered to sell them a 3 family that they owned. They discussed price and wanted to know how much they would need for a down payment and would they qualify. I then started asking them questions and they went from fairly enthusiastic to doing some math and figuring out that the numbers just didn’t work.They knew the existing rents, what the property taxes were, but not how much the homeowners insurance was, how much the city water and sewer cost was.We did some rough estimates and it was clear the numbers just weren’t going to work. They couldn’t thank me enough, saying they would have made a bad investment. Make sure if an investment property is in your future, you sit with an experienced Realtor or mortgage broker to make sure you are not making a bad investment.image courtesy of ddpavumba/freedigitalphotos.netJoe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Email: joe@righttracfg.com
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.
Comments (4)Subscribe to CommentsComment