Good Investment Properties: What to Look for and Where to Start
Before You Analyze Properties, First You Analyze Your Own Finances
When starting to think about good investment properties and considering getting into real estate investing, the first step is to take a hard look at your personal financial situation. This isn't just about whether you have the money or not, it's also a good conversation with an expert about what your real estate investing goals are. Because good investment properties for one investor might not be a good fit for another.
Some investors look for immediate cash flow. Other investors look for high appreciation rates or properties in developing locations. There are numerous real estate investment strategies, and they all have merit. That's why first we want to determine what your goals are as well as your risk tolerance.
It makes sense that one of our owners is a realtor, the other an accountant. When trying to make sure your money is going to work well for you it takes more than just a knowledge of real estate. Taking advantage of tax mitigation strategies, grants, tax credits, and other type items are an important reason we work with a local accounting firm that shares ownership with us.
What Types of Investment Strategies are There?
Typically, residential real estate investors are focusing on one of four goals (or a combination thereof) when trying to find good investment properties. These goals are:
- Cash-flow positive properties
- Big equity build
- Quick flip potential
- Tax deductions
There are other goals an investor can have, such as finding an income-producing property they can also use sometimes for personal pleasure, but these four are the main considerations real estate investors have.
Which Strategy is Best to Maximize Good Investment Properties?
There is no one 'best' focus for finding good investment properties. For some investors, the type of property that may best produce positive cash flow will lack any substantial long-term potential for appreciation, meaning no big sale years later. Other investors can't or don't want to afford to wait for a big payout later and need something that will immediately begin producing income. It really depends on your financial goals.
It is important to work with the right experts who can help you figure out what works best for you. With Southern Bay Realty, you get to work with seasoned investors who are both realtors and accountants. This combination of expertise makes our team well-suited for any residential real estate investor looking for a solid property to sink their money into.
Want to Talk About Investing?
Our experts offer free consultations. So don't delay, call now to schedule a meeting today!
