Most homeowners consider real estate to be a lifestyle choice that comes with maintenance and taxes. However, for real estate investors, real estate can be a money making machine that keeps on adding value with each passing year. This is Read more…
Category: What to buy
When deciding what property to purchase as an investor, it is useful to compare properties by calculating the cap rate for each property being compared. Cap rate is a term used in the real estate industry. It is short for Read more…
This article could also be titled “how to determine if a rental property is a good deal.” This is also the story of my first duplex, which has always generated positive cash flow. I had always been interested in real Read more…
If you’re looking to invest your hard-earned money, you might be debating between investing in stocks vs. real estate. What’s the right option for you? Should you put your hard-earned money into the stock market, or should you buy real Read more…
In order to find positive cash flow real estate, it is helpful to know how to calculate cap rate. Here is a cap rate calculation using actual numbers. Such numbers can be obtained from a seller is you ask for Read more…
In another post, I discussed cap rates of duplexes and properties for which income and expense information is readily available. With a multifamily property, you can demand rental history information or a schedule E from the seller. This is not Read more…
You have probably seen the promotions: guaranteed 9% rate of return for first 3 years. It sounds very tempting as it is a turnkey investment with a high cap rate. You, as an investor, do not need to worry about Read more…
One of the first things you should learn as an investor is how to calculate “cap rate” (capitalization rate). This is the rate of return from rent for the first year of ownership, if you paid all cash, assuming zero Read more…
Most “new” timeshares are overpriced. That is why such they use such hard sell tactics to try to sell them. A building can be sold three times over by selling it as timeshares. “Used” timeshares, that is, timeshares that are Read more…
With new construction, usually the only person to make money is the builder. Even the second owner often loses money. The problem with new construction is that you are paying based on current wages and current prices of materials. Inflation Read more…