Here are 8 questions to ask yourself before buying your next income property to help fund your Retirement Worth Having.
- Am I investing for cash flow or appreciation?
- What type of rental housing portfolio am I looking to own; single family homes, multi-family homes or apartments?
3. What is the intended exit strategy and time frame for this rental home?
4. What is the price point I'm targeting plus or minus 5%?
5. What kind of tenant will be attracted to this rental property?
6. Is this neighborhood holding steady, increasing or declining in value in the next six to twelve years?
7. What are the anticipated returns for this particular income property? Have I double checked my input numbers and my calculations?
8. What deferred maintenance and/or functional obsolescence do I need to be aware of going into this purchase?
Deciding on a winning criteria for your real estate investments should come first, not as an afterthought. Too many times over the years I've seen people buy the wrong property (for them and their goals) because they found a "bargain" rather than a good fit.