If you are considering buying a property and holding it for any period of time as a rental, you should always consider some of the follow expenses before you submit an offer on the property.
If you have cash available, you will not have debt service to pay. HOwever, if you borrow from a line of credit, work with a private investor, usa a business line of credit, have the seller financing the property for you or get a conventional loan, you will have debt service expenses to consider.
You will need to remember the following operating expenses as your core expenses: insurance, property taxes, vacancy, and maintenance costs.
The following might be expenses that you might incur with your property and they should be included as needed in your costs estimate: property management fees, marketing costs, utilities, legal costs, capital improvements, and licenses or permits.
If you apply all of these numbers to the amount of rent you can collect in the current market and you can show a cash flow that you feel comfortable with, it is a great deal. If the numbers do not look good, you might consider the following: offering a lower purchase price, different terms for loans, or reducing your expenses or increasing income in some sort of way.
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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
If you are considering buying a property and holding it for any period of time as a rental, you should always consider some of the follow expenses before you submit an offer on the property.
If you have cash available, you will not have debt service to pay. HOwever, if you borrow from a line of credit, work with a private investor, usa a business line of credit, have the seller financing the property for you or get a conventional loan, you will have debt service expenses to consider.
You will need to remember the following operating expenses as your core expenses: insurance, property taxes, vacancy, and maintenance costs.
The following might be expenses that you might incur with your property and they should be included as needed in your costs estimate: property management fees, marketing costs, utilities, legal costs, capital improvements, and licenses or permits.
If you apply all of these numbers to the amount of rent you can collect in the current market and you can show a cash flow that you feel comfortable with, it is a great deal. If the numbers do not look good, you might consider the following: offering a lower purchase price, different terms for loans, or reducing your expenses or increasing income in some sort of way.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125