Buying an Investment Property? Deals may be harder to find…

Investment Property

Did you hear Bruce Willis is selling his home for $22 Million and he bought it for just $9 Million a few years back?

Real estate agents in San Francisco report overbidding on for-sale real estate.

The Dads as the baseball game say they missed their opportunity to buy that last big increasable condo rental.

What do you think? Zillow shows Beverly Hills home values are increasing, with Zillow data showing values up 18.3 percent year-over-year.

Regardless of your real estate experience, there are always important fundamentals that are important for you to remember and understand and that are essential elements for your success.To get you started, here are three principles to keep in mind:

  • First, always treat your rental property as a business and make decisions accordingly.
  • Second, respect and appreciate your tenants; they are the clients and customers to your business. Without them, you will not survive.
  • Third, it is your responsibility as a property owner to maintain the safety and integrity of your investment.

TIP: Set Investment Goals… Is your goal to build equity in the property? Create a positive monthly cash flow? Create the biggest tax deduction? Have a property you can use from time to time? Simply rent until the real estate market gets better? While resale value depends on the property’s location, among other things, single-family homes are typically easier to resell and hold their value over the long-term. However, a condo building with 500 units may have 10+ units for sale at any given time, making it difficult to sell your particular unit at a competitive price. Coops generally limit how you can rent your property and may not produce the financial returns you are looking for. Make sure you are clear on your goals, particularly what you expect to get out of the property and why. These answers help you to make a better purchasing decision now and assessment of your success later.

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Kimberly Smith is an accomplished entrepreneur and published author with more than 20 years experience as an entrepreneur in the areas of real estate, property management, corporate housing, website development and franchising. In 1999 Kimberly and her husband/ business partner, Eric, launched AvenueWest Corporate Housing, Inc., a multi-million dollar success story. AvenueWest provides real estate property management of furnished residential properties offering full service corporate housing services to upscale executive travelers in need of a monthly lodging solution. A recognized leader in the industry, they were awarded CHPA’s 2010 Provider Company of the Year Award and listed for 3 consecutive years on Inc Magazine’s Inc 5000 list of the countries fastest growing businesses. Inspired to help people find corporate housing and real estate solutions on a national basis, Kimberly and Eric came up with a business idea to create a national resource dedicated to connecting furnished rental properties with executive renters. In 2006 (CHBO) was launched, the first-of-its-kind online portal connecting furnished rentals and the traveling public. In 2013 CHBO was recognized by CHPA as the Associate Company of the Year. In 2009 AvenueWest Global Franchise was launched allowing for the national expansion of the AvenueWest Managed Corporate Housing product. Current offices are located in Phoenix, Atlanta, Fort Collins, San Francisco, Boston, Dallas, Denver and Colorado Springs.

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