Here it is abbreviated:
1. Look for flat areas such as upstate NY, Buffalo and Syracuse, and Lansing, MI.
These markets did not swell with the recent real estate bubble. Their prices have remained consistent and stable, without huge swings up and down.
2. Make the numbers crunch
Will the [tag-ice]rents[/tag-ice] bring in a profit? Simple question. If “yes”, go to the next step.
3. Know the difference in properties which only need cosmetic changes verses those that have serious problems.
This is the key that has made many savvy investors rich (in time). This is why some [tag-tec rich ]people[/tag-tec] clean up in real estate and others don’t. Knowing the difference in the merchandise you buy is the single-most thing that will qualify you as an expert.
It’s not rocket science. Anyone with a little time can learn how to properly access a property pretty quickly. It’s really more of matter of just doing it.
4. Don’t Get Too Concerned about Appreciation
Long term investors don’t get bent out of shape about appreciation. That’s because they are well aware of another basic real estate investing fact. You can’t always have a positive cash flow and rapid appreciation at the same time with a new property you’ve just bought.
That’s because you have to pay for the appreciation up front when you buy a property that’s in demand. A property like that will be more expensive.
To start out with- get those properties with a future of appreciation ahead of them. Start with a positive cash flow and allow the properties to percolate. If being a landlord is not your thing, don’t sweat. Hire that part of it out and keep on looking for more properties to build your wealth portfolio.
Get out there and buy something in 2007.