If you’re considering making an investment in real estate, you already know to invest and where you may want to
invest. However, it’s not always easy to identify a “good” investment. By prioritizing cash flow-positive properties
with lower risk and minimal management needs, you can be confident in your investment choice.
Here are some tips to help you find the right investment property:
Cash-on-cash returns
Investing in real estate involves taking money you have (liquid assets) and putting them into an asset that you can’t
liquidate within a day or two. Search for properties with positive cash flow to get a modest return.
Low on risk
All real estate investing involves some risk, but there are things you can do to reduce the risk. Be diligent in
analyzing, testing and reviewing information on a property to ensure it has low risk.
Low on management
The best investments won’t take up too much of your management time. College rentals, vacation rentals and other
properties in this scope that allow you to rent as long as you can to a single tenant with decent credit is ideal.
To be successful at finding great real estate investments, you must have knowledge of the industry, the ability to
recognize an under-valued property, patience and enough money to get started. With these tips for recognizing a good
investment, you’ll be able to make better investment decisions in the real estate world.