Real estate is like a box of chocolates

Real estate is like a box of chocolates. There are a lot of different places that you can purchase very reasonably priced investment properties. The key is to know what is good deal and ones that are not.

You first need to know that homes versus multiplex's have some differences. As I'm sure you know multiplex's make more money per month...........on paper anyway. There are two key things to look at.
1. The quality of tenants that will be living in your property. Homes usually have way better quality of tenants then multiplex's. The tenants stay in the homes longer than tenants in multiplex's. So make sure you take that into your profit assumption. For example our company knows that a tenant stays in a home on average 12-24 months. In a multiplex it's 8-12 months.
2. The neighborhoods are important for two reasons. You get higher rents and they are easier to sale when you decide to do that.
3 You can run ads on some sites to see what rents are in the area. You can pick a property that you like and run ads for rent before you purchase it and confirm the projected rent!

Another key point to look at is the state it's in. Is it hot their? Cold? Hurricanes? Floods? Major issues that may effect your total profit and insurance cost. Just think of all the people that effected this year! Also air conditioning is a major expense, that can really wipe out your profit. I know I have a few in Phoenix, Arizona area.

You also need to look at the size of the area(I like a million plus) your buying in. Is their a steady supply on potential tenants? What is the percentage of renters to buyers in the area your looking at. For example in the Cleveland area 40% of the population rents.

The last thing I want to talk about is still the size of the area your looking to buy in. I like at least 1 million in the area and surrounding area. The size of your area will effect the cost to maintain your property. Smaller areas have fewer qualified people to do your work, that means it's going to cost you more to maintain your property and harder to find qualified people to do your work too. That's why I like 1 million or more in the areas I buy in.

Real estate is a box of chocolates and you need to make sure the one you pick has the right taste and fell for your portfolio. Brett Young Rooftopvideo.com