What To Consider If You’re Buying An Investment Property

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What do the real numbers look like?

How do you figure out if a place will be cash positive? What are those exact numbers? Head broke it down. “So you’ve identified a property based on where people want to live, what will give you the best return on investment (single-family, multi-family, etc.) Now, you’re trying to get your lease payments to ideally be one percent or better of what you paid for the property. It’s not that easy to do all of the time, but that is the ideal equation,” she says. “So if it’s a $300,000 property, you want to get $3,000 a month for it. Now that you’ve identified these things, you’re able to plug into your initial goal for retirement. So let’s say it was $500,000. Now you can back into that number, and this helps you determine how long you’re going to actually need to hold it to get to this goal that you have in mind for retirement. So hold time is relevant as well.”