Property and Location
The Importance of Property Location
When purchasing investment properties for a steady monthly rental income or for house flipping make sure you do your homework on the location of the property.
If you are purchasing investment properties for a steady monthly rental income then you must first do your research on how much other properties, similar to yours, is charging for rent. An excellent way to accomplish this is to check your local papers (for rent section). Then look for properties being rented out similar to yours. This should give you a good insight on the rents being charged in that area. Then compare your monthly loan payment plus recurring monthly expenses to the amount of rental income you will be collecting on the property to see if you will be making a profit.
When purchasing investment properties for house flipping then you must determine what similar properties that have been remodeled are selling for in that area. If you plan on flipping the house you must make sure you buy the house at a significant discount compared to the remodeled ones in that area. Ask your Realtor for a comparison sheet of the house sold in that area compared to the one you are purchasing. The second factor to take in consideration is how long it is taking other sellers to sell their homes in that area.
Remember, time is money in the house flipping and rental income. So, do all your research before making any purchases on investment properties.