The question arises all the time; especially from persons who living in high cost and low rent areas.
There is a good statement, “Live where you want to live, but invest where the numbers make sense.”
But it’s also arising a question how?
The answer is simple, for this you need to do some work and planning.
First, ask yourself. Decide what you want your real estate investing to do for you and what you can do to achieve it.
There may be need to travel outside. You’ll surely need a team.
Next, choose a place that is likely to provide the type of real estate opportunities you’re willing for.
There are some locations have high demand like property investment in Bimingham. It means they’re expensive and likely to grow. But they probably won’t return much cash.
On the other hand some markets provide solid cash return and abundance of working class jobs. But don’t hold your breath for vast equity gains…unless you force it through adding worth.
Once you have got a market, it’s vital to create a TEAM and therefore the most significant, nevertheless most unappreciated and unnoticed team member is that the lowly property manager. This is often the foremost influential person on your team.
After all, your property manager is that the primary creator for managing financial gain and expenses. However your property manager can even assist you determine prospective properties to get. It’s one thing we have a tendency to place a giant stress on all told our market field journeys.
Sadly, most fledgling investors get excited concerning the property and pro-forma financials…and then make out the market and management later. Huge mistake…and one you ought to avoid.