The concept with investment rentals is
to invest in properties where the rent, minus all the expenses, provide
positive cash flow. Many investors don't do their homework, don't rely
on expert representation and end up with just the opposite.
investor and Realtor Todd Sachs prefers a few types of rental
investments more than others. Obviously, if you read enough on this
topic, you will find that everyone has their own opinions on investment
rentals. Here's a short list of possibilities:
- Multi-Family Dwellings (2-4)
- Apartment Complexes
- Multi-Unit Office or Retail Buildings
- Contractor Yards
properties are more for the full time investor. Some also require
on-site managers. These real estate investments are long term though.
In multi-unit buildings, you mitigate the risks of total vacancy. As
in most rentals you will experience a vacancy rate. If you have a one
unit property, a vacancy means 100% vacant, and no income!
a rental investor, it is best to have cash buying power upfront and
great credit. In this case, with proper planing and smart buying, you
will have the opportunity to refinance and receive back all or most out
of pocket expense for improvements and initial closing costs.
Having your money back in the bank allows you to continue building your portfolio of properties.