How Do You Purchase An Investment Property?
Investing in real estate through an investment property is a great way to add extra cash flow and increase overall net worth over time. Investment properties can be as simple as finding a fixer upper at a basement bargain price, or identifying that ideal rental home that is in a high appreciation area and can attract renters easily. The below steps are general guidelines for identifying and purchasing an investment property that will provide positive cash flow and an overall positive capital gain when the time comes to sell. Step 1 For investment homes used as rentals, the rule of thumb is to charge around 1% of the purchase price as the monthly rent. For example, if an investment home is purchased for $150,000.00, then the monthly rent should be in the $1500.00 ballpark. Again, this a general rule. It also does not apply for more expensive homes, as larger homes tend to rent for between 0.8% to 1.0% of the overall prices due to the lower demand for large sized homes in the rental mark
