Cash is king and so is cash flow. I've heard investors talk about buying a property and having negative cash flow for several years. While this may be advisable in very rare cases; in most instances, it is a bad idea to purchase an income property and lose money from the beginning.
Investing
My 3 Rules of buying single family homes
Investing in single family homes? Not a business for the faint at heart, but it can be done. Here are my three unwritten, until now, rules for buying single family homes. I've learned these rules the hard way...trail and error, blood sweat and tears.
1. The house should not be up a hill or down a hill. If the drive way is steep either way, stay clear of it. The house is best to be above the level of the street. Five to six feet is ideal.
California Investors look at Georgia Real Estate
Old Magnolia Apartments, a 16-unit apartment complex on Maxwell Road between Ga. 9 and Hembree Road, recently sold for top dollar to a California investor. After a brief inspection period and entertainment of multiple offers, Selina Chao closed on the property at just more than $77,000 per unit, or more than $1.2 million.
Net worth vs. Cash flow
The times are good for investors. That was the conclusion from my last
blog regarding the latest mortgage industry problems and their affects
on landlords and tenants.
The current credit crunch has stifled some potential home owners from purchasing their dream home, forcing many to stay in the rental market. This has been an encouragement to landlords who have suffered under stagnant rents and fewer prospective tenants over the last few years.
The current credit crunch has stifled some potential home owners from purchasing their dream home, forcing many to stay in the rental market. This has been an encouragement to landlords who have suffered under stagnant rents and fewer prospective tenants over the last few years.
Landlords, retail buyers, and the mortgage market
The recent mortgage turmoil has many wondering about the impact on the
economy, mortgage industry, and the real estate sector. As a landlord
myself, I was curious to determine the affect of the market changes on
the pool of tenants and future rental rates. For some answers, I went
to a well respected mortgage broker, Steve Beecham, President of
Hometown Mortgage in Alpharetta.
Net income, capitalization rates, and internal rates of return
There are three primary finacial terms that affect how we determine the value of real estate. Without a working knowledge of these terms, investors and Realtors are at a disadvantage in the market place. These terms may sound difficult to grasp but are an integral part in understanding how we determine the value of real estate and are important for commercial and residential investors alike.
