Right time to buy Raleigh Investment / Rental Properties?


Many investment properties are priced just right. 10% CAP rates are not uncommon return.

Great properties, Great cash flow and even structured properly there are great tax benefits.

The other question is do you finance or pay cash?

Cash is always king, no matter what the interest rates are. Don’t have to apply or qualify and your privacy is protected.

However, with low interest rates, even commercial loans for investment properties, the leverage option is very good too.

Basic rule of thumb is the monthly rental income should be no less than 1% of the purchase price, including closing costs and fix up.

So if you are Charging $1,000 / month rent, then the maximum paid for the property is $100,000.

And no these properties are not dumps, but great properties.

Find the average monthly rental prices in your market, Craig’s List will do, and work off those rental rates to determine which homes, areas and prices you will pay.

Sticking with a the simple 1% rule and you will almost never get stuck in a UP or DOWN market.

Paying too much for properties and over leveraging can and often does lead to challenges.

Good Luck

Tom
Allen Tate Realty
http://www.allentate.com/tombohlmann

Need Help locating great investment properties? Contact me and I will be glad to help.

Advertisements

About Raleigh Homes Info

Greetings, My name is Tom Bohlmann. I am Allen Tate Realtor / Broker in the Raleigh, Durham, Wake Forest, Cary North Carolina areas. Your Home Search starts here: http://www.allentate.com/tombohlmann I have been involved in the Raleigh area real estate investing since 1995. I know all the ins and outs of many many different area markets that the average or even above average Realtor does not know. Give me a call or email so we can talk about your Real Estate Needs. Tom 919-543-5714
This entry was posted in Raleigh Area Real Estate, Raleigh NC homes for Sale, Real Estate Investing, Real Estate investment seminar, REO, Taxes and Real Estate and tagged , , , , , , . Bookmark the permalink.

One Response to Right time to buy Raleigh Investment / Rental Properties?

  1. Pingback: Free Article Directory: How To Choose House Cleaning Raleigh Providers « Debt Consolidation Raleigh

Comments are closed.