What To Consider If You’re Buying An Investment Property
Source: Tom Williams / Getty
There is today’s payday and tomorrow’s
Head explains that there’s more to a property than what it will sell for. “So two things are happening: there is the residual you’re saving, and the property itself is accumulating value. If you have the ability to accumulate multiple properties, something to look for is you want to be able to cover the [mortgage], so identify how much you’re going to be able to make [it] off of that property. So you’re back-ending into what you’re trying to have at the end of this when you do retire. If my goal is to have half a million dollars when I get to retirement age through property, then I’m not just looking at the final value of the property. I’m looking at what I can make off the property annually. What is going to be my net operating income off of this property at the end of each year?”
