Investment Home Rise & How To

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April 29, 2016 by Jeff Lowen

Investment property rides again! Here’s a great infographic to show what’s going on with the market in terms of investment and some good little nuggets about how to join the party at the end…

Some Highlights:

  • 2015 marks the first year-over-year increase in investmentĀ home sales since 2011.
  • 62% of all investment homes purchased were single family homes.
  • The South saw the highest percentage of investment home sales (39%) with the West coming in second (28%).

Investment-Homes-STM-1046x1662

…Okay!

So, investment homes are coming back strong and they seem to be a good choice. Where do you go from here? How do you find one? Do you just grab an agent and say show me a house, I wanna buy it for investment? Ha! Only if you’re in need of a drug front! Lol There’s a lot that goes into buying an investment home. I’ve seen some that don’t think so (Including yours truly early in my career), and we do so at our own peril.

“You make your money when you buy.”

Remember that. No, really… Remember that. Have an investment criteria. What do I mean? A true, hardcore investor is concerned about one thing. ROI. Return On Investment. Then, there’s everyone else. We all fall somewhere in between.

Define your objective. For example: Buy, Rent and Hold (BRH) or fix and flip (F2)? Different rules for each. BRH means you’d like to find a place with a low vacancy rate, cookie cutter property or something desireable to the most amount of tenants, in semi-good shape and with relatively low outlay upfront, will cover the costs (mortgage, taxes, insurance, maintenance, etc.), with perhaps a positive cash flow. F2 means you’re looking for something you can turn into an amazing home and buyers will stand in line for it as you laugh all the way to the bank because you got a great deal on it and all the work you do and the cost of holding (mortgage, taxes, insurance, maintenance, etc.) are far below what you can sell it for. There are similarities, but in addition to having a specific criteria that works for you and your real estate goals, let me say it again…

“You make your money when you buy.”

Want to talk a little more about how it all works and how you can find an investment property that is a money-maker and not a money-taker? Reach out to me!

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