In 2015 many people are buying cash flow Real Estate in Orange County.
Although buying cash flow Real Estate is a smart move, it’s important to ask yourself the following questions to insure that you buy the right property for your portfolio.
Question 1 – What is the price of the property?
Important to ask since if you buy a more expensive property, you may be required to put down more money, and this will ultimately lower your monthly cash flow.
Question 2 – How much money am I putting down on the property?
This question is vital to ask since your return on investment will be based on the amount of money you put down on a property.
Question 3 – What will the property rent for?
Question 4 – Who are you going to rent the property to?
Thinking about your ideal renter is important since targeting the right people will also help you to connect with possible long term renters who will be happy living there.
Question 5 – How long will it take you to find renters?
Yes, you’ve found a great rental property, and it’s going to net you awesome cash flow, but the reality is that if you aren’t able to rent your home, condo, townhome or multi-family property quickly then your property is going to be vacant for longer than you expected.
Always think about how long the property will be vacant during the time that you own it just to make sure that you are able to pay the mortgage during those periods when the property is not rented.
Question 6 – What will your cash flow be after paying HOA and other fees?
Last of all, but most important is thinking about your real profit after paying your HOA, property taxes and other fees.
You may be able to rent your property for $2,200 per month but if your taxes and other fees amount to $750 per month, than your cash flow really is $1,450 per month.
For more information on what you need to know when buying cash flow Real Estate, or to view Orange County homes for sale, contact Fred Sed & Associates today by calling us at (949) 272-0125.