How to Buy Homes in 2017
Want to buy homes in 2017?
Buying homes has changed tremendously over the years. The main reason most folks invest in real estate is for the returns, which include cash flow and appreciation of a property.
Real estate is an asset that has the ability to produce monthly income and gain substantial profits on sale or refinance of the property.
How to Buy Homes in 2017?
When buying homes, a person must make sure they are aware of repairs that are needed and how much money they need to put into property – due diligence has never been more important as it is today.
Folks that make money in real estate are those that do their due diligence and know the area and repairs that are needed, those that don’t will not be in the market very long.
If your property does not bring at least a 10% cap rate, it is time to look elsewhere. To figure cap rate, you need to figure you Net Operating Income and divide that by the cost of the home, if you can’t get at least a 10% cap rate, I would suggest moving on to the next property.
Be aware that some cap rates may be extremely high, however it may be an area that is on the downward slide. When choosing a property, the main factors you need to consider are Neighborhood, repairs needed, cost, Returns, Risks and opportunity to add value.
Make sure to do your research, just because a deal looks great on paper doesn’t mean it’s always a homerun – always dig deeper. When buying a home you need to do your research, don’t jump on first deal because it is what your realtor recommends.
When buying a home, you need to look at many different resources. Those resources include online sources, such as Zillow, realtor, redfin, ask other investors where they are investing, visit the county courthouse to look at foreclosed properties and search the mls for the best deals.
Remember, real estate investing is a business and if you want to stay in the business for a long time you need to treat it as a business and not a game – do your due diligence and buy the right home/property.
Due Diligence = success
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