Understanding The Basics Of Residential Investment Properties

Posted on: May 13, 2012

Categories: Residential House

Author: Buy Fix and Profit (Guest)

With property prices going down and with interest rates at record lows, what usually comes to savvy investors’ minds are buying investment property. Lately, there has been an increase in the number of investors wanting to acquire residential investment properties. When properly managed, they can be a great and steady source of income for a good number of years until you decide to resell.

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Photo Courtesy of Alan Cleaver via Flickr








Every property is a potential money maker. Let’s look at how certain residential investment properties may be worth your time and effort. First, consider how much rent you can expect from the potential property. Remember, the rent should be able to support the purchase and rehabilitation and maintenance costs of the property. A safe margin would be $200 dollars profit a month beyond the mortage payment. The structural integrity of the residential investment is also important. Make sure there are no serious structural damage to the foundation or other areas of the home, including utilities such as heating, plumbing, and electrical.

You can expect two types of revenues from residential investment properties – rental income and capital gain. Either way, both are a steady and lucrative sources of income that can prove to be rewarding in the end.

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