I have been finding several people recently that are considering investing in real estate. They have great credit, money for the required down payments and foreclosures are very attractive. The decision making is taxing and stressful. Consider the following information to "educate" yourself and enable for you to make a sound investment decision.
First you must consider what you are seeking. Is this a short term investment or a long term investment? If you are looking for a short term investment please keep in mind when reselling your home, there are lending restrictions on the resale. In addition, your purchase "establishes" market value at your purchase price. I suggest keeping and renting for a couple of years to allow the market/neighborhood recover from your purchase.
If you are considering rental properties (residual income) then you are looking at the purchase for positive cash flow. The first step is to speak to a good lender. You must know know the amount of upfront cash required for your loan. Times have changed dramatically over the past several years and continue to evolve daily. BE HONEST! This means with yourself, the lender, the seller and the Realtor. This way you are assured to making an intelligent decision and not building up false hopes of your investment.
If you are looking for a long term investment, consider the payment and your rental income. Does it meet your rental cash flow expectations. Also assume that one month of every year it will be vacant and you deduct this from your profit. If you renter moves in a year then you need to clean and find another tenant. This takes time and also must be considered. Yes, your tenant "may" be a great tenant, clean, responsible and stay for many years. Be prepared for a "less than perfect" scenario and adjust your expectations from there.
Charlotte Real Estate provides great potential but you need to do your homework. Understand why and where your rental clientele would like to live. Understand the demand and their potential needs. An informed buyer is a wise real estate investor.
