Are you thinking about investing in real estate? Here are the things you should be looking for.
If you’re thinking about investing in real estate, here are four things to consider that will help you determine whether a property is right for you:
1. Monthly income. What will you get each month from the home?
2. Expenses. Coupled with the monthly income, these make up your ROI. You’ll want to know the cost of your monthly mortgage, including the taxes and insurance. If you’re purchasing a condo or in an HOA, you’ll also want to know about the pertinent fees.
3. The property’s current condition. To give an example, it can easily cost $5,000 to $7,000 to replace an air conditioning system here in Florida. Roofs can be even more expensive. Check to make sure the systems in the home are working properly.
“The expenses and income make up your ROI.”
4. The current tenant situation. If the property already has tenants, have they paid each month on time? How long is the lease? Can you raise the rent, or is it at a good level already? These are all questions you’ll need to answer.
These are just a handful of tips I wanted to share with you today. If you have any other questions about buying or selling real estate in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.