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How To Segment A Potential Property
With the real estate market the way it is today there is a vast opportunity for ambitious individuals to make a living and possibly become a millionaire. In order to be successful in real estate you have to be able to distinguish properties, and understand the risk within the potential.
Don't know how to identify the low to moderate income areas? Don't worry we have just what you need, but first we need to look at the different types of properties.
- Moderate-income = Positive cash flow and low selling price, but less appreciation.
- Middle-income = Minimal cash flow, but a chance for better appreciation.
- Upper-income = Negative cash flow, but greater appreciation.
When it comes to identifying the properties you need to revise the condition of the house, and its surroundings! What kind of neighborhood is the house in ? Well , if it is a high crime rate area then it will fall under a whole different management style. Just be careful, choose your investment wisely, and stay away from ghettos.
What will happen to moderate-income housing in bad markets?
The question seems to surface a lot, but there will always be a need for moderate-income rentals regardless of what happens to the market. Moderate-income rentals are listed at the lowest rents per area. If the tenants could afford more, then they would go to a middle or upper income area. ( to be safe, and protect my investments I merge from dealing with the moderate income just because its not my investment style)
Locating A Property & Possibly Making A Bargain
Their is a good way to search for properties and a not so much intelligent way. We all know there are people out there ( scam artist ) who want to do nothing but cause trouble and steal money. We list below a few sources that could include a great bargain!
- Shopper-type publications
- Legal notices
- Obituary notices
- Classified ads in local newspapers
