Phoenix Real Estate Investing – It Ain’t Rocket Science!

Fix and flips? Rental properties? Everybody dreams of success in real estate investing, right? But where to start?? It really boils down to three easy steps:

1. Plan your strategy – are you setting long term or short term goals? For long term goals you are looking for buy and hold opportunities – rental properties. For short term plans, you will be buying property then re-selling it right away. You need to know which way you are heading to you can develop a successful strategy.

2. Know your numbers – Depending on your strategy, you can use some simple rules to determine which properties are the best candidates. For fix and flips, yoiu will need a 25-30% margin – not easy to find in our current market. For buy and hold plans, rent rates determine the best buys. For lower priced properties, make sure monthly market rents are at least 2% of the purchase price. At higher price ranges, you will need at least 1.25% to make the numbers work.

3. Leverage – Can you stretch your cash by borrowing? Often you can make better profits by leveraging your cash through loans. Watch out how you borrow though – some mortgage types will limit the types of properties you can buy.

Let me know how I can help you achieve your real estate dreams!