Investing in low cost small income properties is actually a proven solution to wealth and positive income, especially in today’s cheaper market. What is a little income property? A Single family house, duplex, triplex, or 4-suiter (quad) and small apartment buildings.
Why are small income properties a great investment? You have a large tenant pool to work with. Most renters would prefer to let a house or duplex as opposed to a large apartment complex for many reasons. You can buy them at ultra low prices in SOME specific markets, and there are more renters out there NOW than ever before. They can be usually DOWNTURN-EVIDENCE if bought in the correct area, like affordable rental neighborhoods.
Finding the deals:
This is the easy part to some degree.
Dealing with local brokers and agents is a good way to come up with long-term deal flow. Because of the real property crash in past 3 years A LOT of the opposition (Especially the amateurs) was eliminated out there! Most investors now are cash investors only going after REO’s and MLS listed properties.
You need to follow specific rules and make sure you’re not buying crap. There are lots of super-affordable properties out there as an effect of the real property collapse, but don’t forget that all that glitters is not gold. You have to place yourself in the shoes of the renters. Remember the cash flow emanates from the tenant, not out of thin air.
I focus my efforts in low-income rental markets, I find the most cash flow and success in these types of neighborhoods, as well as the contest is a lot less, even nowadays. The price is low as well as the cash flow is high. You want to uncover a similar market where rents are stable but costs continue to be low or undervalued. They are still out there. You could always go outside your market, in the event you live in an expensive market.
The majority of folks need to create a portfolio of cash flow rentals to maximize their returns, income and way of life.
Wherever you set-up shop, you must have these team players in your company:
-Real estate agent willing to work beside you in getting images and making lots of lowball offers
- Professional licensed property manager
-Handyman / care / onsite type manager (Cheap)
-Eviction attorney that does things YOUR way
-Subcontractors like, roofer, plumbers, HVAC, etc.
-A general contractor which will not rip you off.
-A low cost rental market with stable solid rents.
Earning money in small income properties is actually a proven way to wealth. You only must possess the systems set up as you go along and use lots of common sense in your dealings with the different vendors you may use, and also including the renters.
Want more? Take a look at NetWorthRealty.com.