When it comes to buying an investment property, ‘fix and flip’ or ‘buy and hold’ are the two main strategies people use. For either strategy, though, there are three overriding rules you need to remember:
1. Location, location, location. This mantra remains rule number one when it comes to real estate. Many people assume the nicest area they know is the best place to purchase an investment property, but that’s not always the case. There is a lot of data that you need to take into account before choosing a location for your buy. You also must be crystal clear on what you expect to get out of the property, whether that’s cash flow and equity appreciation, or a quick profit.
2. Be mindful of the price. As with any investment, the idea here is to buy low and sell high. However, it is becoming increasingly challenging to find a true bargain in today’s market. There are still a few outlets available where you can find a good buy. At the same time, don’t be afraid to pay the full asking price for the right house.
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Don’t reinvent the wheel.
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3. Don’t reinvent the wheel. There are a lot of people who’ve made a fortune doing real estate investment, and there are a lot of people who’ve lost a fortune doing real estate investment. The best thing you can do to avoid the latter scenario is seek advice from industry leaders and hire a professional. We live and breathe real estate. We know what works and what doesn’t.
If you have any questions about this or any other real estate-related topic, please don’t hesitate to give me a call or shoot me an email. I would love to be of service to you!
