A buy and hold strategy when buying investment property is one great way to build long term wealth. Knowing what the going rental price is in the particular area is important in your due diligence. Set it too high and you might not be able to rent the property out. Set it too low and you may not cash flow positive.
There are several ways you can go about finding rental prices in a particular area when buying investment property for a buy and hold strategy. You can check craigslist, your local newspaper, or even call local property managers. One neat resource I’ve found to find rental prices is a website called Rentometer.
At the Remometer website you simply input your property address and target rental amount. It then searches all the rentals in the area and tells you how you compare. It also provides you with the rental prices on several properties in our area. This information is extremely useful when buying investment property using a buy and hold strategy.
For a list of additional tools and resources useful when buying investment property, click here.
This is a great time for buying investment property and holding on to it for long term wealth generation. An ever growing number of homeowners seem to be on the brink of foreclosure according to the news report below. This creates an incredible opportunity for those looking into buying investment property. The key, if your new to real estate investing, is to get educated and find a mentor who’s already buying investment property and is willing to work with you.
When buying investment property, one of the first things you do is look for motivated sellers. Once you’ve found a house with a motivated seller, it’s a good idea to do a quick check of the homes market value as compared to the owners asking price.
The links below are useful sites for those buying investment property who want a general idea as to a potential homes market value. They use comparable sales in your area with which to estimate a homes market value. When compared to the owners asking price, it can give you a good idea whether or not you want to move forward with more in depth analysis.
Before buying investment property, it’s always a good idea to consult a local Realtor® to obtain the most accurate comparables via MLS and/or request an appraisal of the property from a licensed real estate appraiser.
For more tools and resources related to buying investment property, click here.
While searching the web for information on buying investment property, I recently came across an interesting concept called the “real estate pyramid”. This is an important concept to understand when buying investment property.
So why is buying a “white elephant” investment property not a good idea? Well, click here to find out.
