10 Mistakes to Avoid When Buying an Investment Property
Using your hard-earned money should mean that you do your research when buying an Investment Property. So be sure to do your research. The goal is to start your portfolio off successfully. I recommend looking outside your area and trust in your Realtor®. They will guide you in the right direction. Almost every prospect requires that you start out low and work your way up. Real estate investments are no different. It’s important to begin with a solid property before finding a challenge. Start out with smaller, cheaper properties that you can afford and look into rents in that area.
If you look in Maple Ridge for example, you can buy a $199,900 property that can bring in $1200 a month in rent. With 20% down you’ll be bringing in a positive cash flow, after mortgage and strata fees are paid. Be it a small return but it’s a return none the less. That’s exactly what you want to be doing, which is making money. So think outside the box and start small. Once you’ve got the hang of it then you can add to your portfolio. In no time you’ll have 5-10 properties and be on the way to financial freedom.
The prices in Greater Vancouver are inflated, so learn other areas in BC. Reason being is that the prices in the surrounding areas are better. Making it easier to get into the market at an affordable price. So instead of buying a $600,000 downtown property, maybe think of investing elsewhere. This is so that you can grow that positive cash flow.
Plenty of challenges accompany the current real estate market. So those who invest in real estate without proper preparation might suffer the negative consequences. If you’re interested in beginning a rental property business…