Topic: Buying Investment Property
What should be my approach as a rental property investor?
When investing in rental properties, our strategy for our investors has always been simple. Look at the money received versus the money spent. The money coming in should exceed the money out. This is called cash flow. We at Baltimore Cash Flow Rentals have always frowned on negative cash flow, but we understand some investors are looking for tax benefits. We have a complete command of this approach and can fully explain the effects of depreciation and appreciation of properties. Let us show you how to value potential properties by working backward from the rental income.
How many properties should an investor own?
Each investor has their own threshold for number of properties to own. An investor's needs and strategy will determine how many homes to own. You may only want a few properties for extra household income. Or, like other investors, you may want to develop a business, owning within a few short years 20, 50, 75 or more houses from which to make a living. Additionally, there are investors who use their retirement accounts (we show you how) to invest in rental property, notes, mortgages. A quick phone call will determine eligibility of your retirement account.
What sources of money are investors using to purchase rentals?
There is a lot of money in the marketplace, and each investor can be creative for their own deals. Many have liquidated stock, bond, and equity holdings to invest their own cash. Others are using primary residence equity lines. Some are pooling cash from family, friends, and business associates who themselves are content with a 5-10% return. Finally, some are using retirement money. Yes, you can own real estate through your retirement holdings. Contact us for more information.
Who is there to help me after purchasing a property?
Most investors, if they prefer not to manage the property themselves, use a property manager. There are numerous companies that perform property management in various city neighborhoods. We advise you to interview several before making a decision.
How should an investor take title to a property?
While there are numerous ways to take title (personally, corporately, limited partnership, limited liability company), we recommend you consult a knowledgable tax advisor or attorney to review your needs before making this decision. What works for another investor may not work for your investment needs.
If I have never owned an investment property, what should I do first?
Prior to any investment we recommend a conference with our principals, Mr. Fell and Mr. Hearn. Please see our Services for more details about this no-obligation learning experience.
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