Buying Rental Property-Investment Tips
By: Troy Schuyler
I run into people all the time who are considering buying rental property. Often times people are looking for advice and investment tips, like:
- How to detemine the best time to buy.
- How to know if it’s a good enough deal.
- How to minimize risk, and so on.
So, best time to buy? There are actually two different answers to that question, depending on why you are buying.
For those of you considering buying a home as a primary residence, take a look at my article titled good time to buy a house. It’s dedicated to answering that question for those of you who are hoping to get a bargain on a home to live in.
To Clarify: If you are an investor, or considering becoming one, the best time to purchase a property might be completely different than it is for someone who just had their 4th child in 5 years and desperately needs that extra bedroom.
How do you like the mixed signals we get from the media’s advice. On one channel you hear buy now and another you’re cautioned to wait for the bottom. Maybe you have even asked a professional, like a realtor or mortgage broker about when you should seriously consider buying a residence. Likely you get an answer that goes something like “you should buy at the bottom of the market.”
Now, that sounds great! That sounds perfect! That sounds reasonable… but how do we know when we’ve hit the bottom of the market?
The fact is NOBODY CAN! Not the best realtor, guru, mortgage guy, or economist can pinpoint when we’re at the bottom of any market.
This is important! [Read more…]