Thinking of the life of your investment

I hear of a lot of investments that investors purchase. They get a great deal on a property and then try to figure out the details. Rehab cost is usually the first obstacle, getting reliable people that will get it your rehab done and done to your specifications isn't always easy. You must also keep it in the budget that makes sense for the property. The proper paperwork is need to ensure that they will not lien your property after construction.

You need to find the right areas to purchase in also. I personally always look at the retail, Schools, and vehicles in the area I'm considering. I do not like any boarded up properties at all in my areas.

For example Me and my clients buy in 5 different areas. They understand what the sales price, Option Price, or the rental rates in each area. We look at the taxes also in each area. All the above considerations have also been established.

Some investors get to this point, and then try to figure out they need some kind of property management for their investment. This can very time consuming and can cost you a lot of profit if your not with the right company. I would ask for references to at least see what their clients think of them. Always check to see if they are licensed in their field(Property Management).

Maintenance and upkeep are a virtual part of keeping your property healthy and getting the top rates in your area. Heaters, Plumbing, Roof, and general up keep is needed just to name a few things. Understanding the cost and keeping it reasonable is a very important component to you cash flowing. Unless you have 50+ properties you will need to hire new maintenance people for each new problem that arises. Make sure you have researched and checked these contractors out before you have a problem in that area. Understand their quality, Price and how long they take on getting items repaired.

What type of up keep cost will you have as the property gets older. Paint, windows and blinds are a few things. Keep all this in mind when you buy a property. This will cost you some money. That is why our company demands high cash flow properties with low maintenance. We have over 100 properties and make sure our cost are quality are controlled.

Keeping your properties updated at a reasonable cost makes you a great return for years to come.

One last thing make sure that your cash flow is 18%-24% on your investment properties. Having great cash flow really puts money in your account and you will have plenty for any up keep you may need. For example we just did a home that had a total cost with rehab of $40,000. Our client cash flows $600 a month net. That's $7200 a year! Wow that's great cash flow that they can bank on!

Planning for the life of your investment keeps you cash flow coming in over many years. Isn't that what is all about. Planning is a key component to your success in the real estate investment game. Brett Young www.Rooftopinvestment.com