You’ve made the decision to diversify and buy a rental property. Now what? What type of property best suits you?
Will it be a condo? Will it be a fixer-upper? Will it be a turnkey? Do your research before you pull the trigger. There are positives and negatives for each of these types of properties. Know your limits and buy something within your comfort level and budget. Don’t forget to consider the viability of the investment and the time that you are willing to put into it. The numbers don’t lie. Don’t buy something on emotion. There are many things to consider
including capitalization rate, operating expenses, and rents. These are some of the things that the bank looks at when determining a valuation on the property and how much they are willing to lend you. Lots to consider. Next week I will explain what I think are the pros and cons of buying each one of these types of properties.