Whether you are a new investor or have owned several properties in the past, I have a couple key tips to help you choose the right investment property.
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With the market as hot as it’s been this summer, a lot of people have asked about investing in real estate. There are a few simple things you should keep in mind.
Investing in real estate can be very complex unless you have a good real estate agent working with you. Whether you are a seasoned investor or you’re brand-new to the game, reach out to us. Let us guide you through that process and be your eyes and ears for upcoming properties.
Since there are so many properties out there, a lot of people are saying that now is a good time to invest. The truth is that it’s always a good time to invest if a property meets the necessary criteria that you’re looking for.
It’s always a good time to invest if you can find the right property.
I recently read an article from Afford Anything that hit on a few key tactics that investors use.
First, make sure you pay attention to the gross rent multiplier. When it comes to looking at homes, remember: deny first, scrutinize second. There will be hundreds of homes for you to go through, and the gross rent multiplier will help you wean out what can be rented for a good price.
Basically, the gross rent multiplier takes the total price of the property plus repairs and divides that number by the gross monthly rents.
For example, let’s say you buy a home for around $200,000. If you can find something that rents for around $2,000 a month, that will give you 100 months to pay off the loan. 100 months is the number investors look for—if it will take 100 months or less to pay off the property, that is a solid investment. The gross rent multiplier will help you find that number.
You should also pay attention to the 1% rule. According to this rule, you take the gross monthly rent and divide it by the purchase price and repairs. So if a home rents for $2,000 and it costs $200,000 to purchase, you would make 1% off of your initial investment each month. The 1% rule is a great way to make sure you purchase a profitable property.
If you have any other questions about investing in real estate, just give us a call or send us an email. We would be happy to help you!
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Thanks to this website for bringing comprehensive information to the audience and adding new things to the Internet. Hope to get more of this line of information in future as well.
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I’m looking at getting more into real estate as I know the return on them can be quite high and profitable. As you said, knowing what the gross rent multiplier is will definitely help you when determining what to buy. I’d look for properties to where I’d make my money back in 100 months or less.
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I like your tip to deny first, scrutinize second. I have been thinking of buying a home for myself and my wife. I will make sure to keep this tip in mind as we go through the process of buying our first home.
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It’s good to know that there is a certain timeframe that an investor should look out to when investing in a property, and that is 100 months. Before getting married, I want to settle down and invest in a real estate property first so that I can assert my future. My fiance understands this very well that’s why I want to make sure that I will be investing in a profitable property. I’ll always remember your advice and ensure that I will be assisted by an experienced real estate agent so that I can be assisted with the paperwork and other matters.
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Hi Huffaker, I’ a fan of your blog since 2015. Your blogs inspire me when it comes to real estate tips. Now, your blog about top tips for investing in real estate is superb. I never thought we will come to a point we consider real estate as top businesses nowadays.
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I liked how you phrased to “deny first, scrutinize second” because the gross rent multiplier can be a tool to help you choose the right property. My stepfather wants to buy a second home because he plans on renting it. I will be sure to help him hire a good real estate agent with plenty of experience and that knows how to handle gross rent multiplier techniques.
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Great Information for real state investors. By reading this article investors will get confidence to invest in real estate, and one of the best benefits is steady Income -This is a no brainer! The majority of people invest in real estate for the steady flow of cash they earn in the form of rental income.
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Thank you so much for sharing your blog with us.
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I recently inherited a nice amount of money. Because of this, I’ve been thinking of investing in real estate. I like how you mentioned that one should consider whether or not it will take 100 months to pay off a loan. These tips could help me invest in real estate, so thanks for sharing them.
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Thanks for informing me about the 1% rule in buying a rental property to ensure that we would purchase a profitable real estate. My husband and I plan to buy a couple of rental properties in our area to rent out so we can have a passive income. I’ll share this rule with my husband so we can use it when we shop for properties for sale.
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The biggest mistake one would ever make when investing in real estate is to invest without any planning. Always have a plan whenever you are going to start something new. Without planning, there will be a haphazard
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My husband and I are planning to invest in a commercial building, which is why we’re thinking of seeking help from a professional that may give us some tips. Well, I guess you have a point that scrutinizing the property is needed. We’ll also keep in mind to consider the possible repairs.
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My dad would like to buy a residential home this year, which is why he’s thinking of hiring a real estate agent. Well, I guess you’re also right that he must save enough money for the downpayment. It’s also a good thing that you’ve mentioned here that we should buy a profitable property.
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I am planning to buy my first investment and I still have a lot of questions in my mind. Thankfully, I stumbled upon this article.
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This tips are useful. Thanks for sharing this to me.
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Great tip about paying attention to the 1% rule. I need to get a house in Texas by June. I’ll have to get a realtor to narrow down the search quickly.
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People planning to buy a home could wait for a possible market correction, but there’s no guarantee that prices will be lower by the end of 2021.
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I can only imagine how complex real estate investing can get. I don’t want to make a mistake. So I’ll get some help from professionals.
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It’s awesome that this article talked about investing in real estate might be complicated if you don’t have a skilled real estate agent on your side. I’m glad that you explain it thoroughly and now it makes more sense. You did a great job of explaining real estate investing services.
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Thanks for sharing informative article.
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Thanks for informing me about the rule in buying a rental property to ensure. Choose the Best Local Home Buyers In New Jersey.
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I like your real estate tips. I need to get an agent. I need to sell my house by the end of the month.