Zillow Advice: Investing - what RESEARCH do I need to do before buying RENTAL properties ? http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ Zillow Advice | Zillow Real Estate Because the full gament of ... http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ Because the full gament of a person's complete circumstances is impossible to detail in a post on a website, the best bet for you is to consult a trusted real estate expert about your options. An experienced agent can provide you with&nbsp;information&nbsp;about the pricing, (changing, falling, stabilizing - whatever is applicable) of investment properties and homes in your areas of interest and assist you in strategizing. Further, it is probably in your best interests to consult a financial consultant and/or an attorney about your options. The more you know, the more heads you have looking out for you, the more likely it is that you will have a clear perspective and be able to make a solid decision for you and for your family. Diversification is possibly something one of these advisors will bring up.. Good luck to you! Fri, 05 Nov 2010 16:22:00 GMT http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ 2010-11-05T16:22:00Z I would suggest looking into ... http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ I would suggest looking into finding a new home and not rental property. Take some of your money and use it for a down payment on a primary residence. You can then take advantage of the current record low interest rates and not have to share a house with the family. Then save some of your money for future unknown expenses that always tend to pop up. Either way talk to a Realtor in your area and see what the current market is doing. I know our market has been slightly rebounding and the prices are holding. While I don't think the market is going to make huge gains in the near future I do think the prices have stabilized. And who knows when the interest rates will start going back up. They can't hang around at these lows forever. Wed, 29 Sep 2010 22:53:00 GMT http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ 2010-09-29T22:53:00Z You sold a free and clear ... http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ You sold a free and clear house, in the worst market in history, so you could buy more houses? <br/><br/>To answer your questions. No and don't. Wed, 29 Sep 2010 22:34:00 GMT http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ 2010-09-29T22:34:00Z Although the market may continue ... http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ Although the market may continue to drop some, the first place to look is what area you are comfortable owning in, then you start with the basic research of the stability of that area. Do you want the best deal on a piece of property (foreclosed, needs some work or ready to occupy). there is financing available for all scenarios for both owner occupants and investors. Get a loan officer that understands what your ultimate goals are so&nbsp;they can put you in the best products. The realtor that you work with is also important to help you meet the goals that you have set.&nbsp;<br/>Good luck with your purchase(s).<br/><br/>Greg Migacz<br/>Rehabman Mortgage<br/>[contact info removed by moderator] Wed, 29 Sep 2010 21:31:00 GMT http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ 2010-09-29T21:31:00Z mirzainv,When buying investment ... http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ <p>mirzainv,<br/><br/>When buying investment property there are many things to research.&nbsp; Location and cash flow are two of your biggest concerns.&nbsp; Longevity is also very much key in this market&nbsp;to obtain&nbsp;success.&nbsp;We can not predict the immediate real estate future,&nbsp;but history tells us that&nbsp;values will go up.&nbsp;&nbsp;Although sales prices have went down, residential rental prices have stayed the same or increased&nbsp;due to the amount of renters in the market today.&nbsp;Hands on management skills are&nbsp;very much&nbsp;required&nbsp;along with good&nbsp;business judgement.&nbsp;There are currently&nbsp;great tax incentives to&nbsp;owning investment property. I would encourage you to&nbsp;research this matter with your CPA.&nbsp;</p> Mon, 27 Sep 2010 02:34:00 GMT http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ 2010-09-27T02:34:00Z Great Post Gregory. Lots ... http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ Great Post Gregory. Lots of good info about purchasing a primary residence or a property where&nbsp;you can live in 1 unit and rent the others.&nbsp;I also&nbsp;agree about using professionals, especially a property mgr.&nbsp;We hear investors, AFTER they've purchased the property,&nbsp;asking&nbsp;for monthly rental income that's far&nbsp;more than the rental market can bear,&nbsp;&nbsp;The best advise I can give you is:&nbsp;Talk to a couple of property managers that have similar properties&nbsp;in their inventory, so they can give&nbsp;you a realistic rental rate. This will further your ability to make a good decison for your family.<br/>Good Luck.&nbsp; Tue, 21 Sep 2010 02:08:00 GMT http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ 2010-09-21T02:08:00Z Remember that all real estate ... http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ Remember that all real estate is LOCAL.&nbsp; Select your market(s) based on sound economic and financial fundamentals.<br/><br/>A good place to start is with our free report <strong>"Building Wealth with Real Estate"</strong> found on our website.<br/><br/>Good luck!<br/><br/>Marco Santarelli<br/><br/> Mon, 20 Sep 2010 18:16:00 GMT http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ 2010-09-20T18:16:00Z Investing in real estate ... http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ <p>Investing in real estate is not a bad idea for a lot of people. Looking at what you posted though, I would suggest that you are not in a position to invest. Your primary focus should be trying to find a place for your family to live first, then when you have some extra liquid cash, you should consider buying up investment properties.</p> Mon, 20 Sep 2010 16:27:00 GMT http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ 2010-09-20T16:27:00Z It sounds like you need a ... http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ It sounds like you need a place to live first.&nbsp; But consider the options of multi-unit homes (like duplexes/triplexes/quads) or an apartment building if you are interested in investing at the same time.&nbsp; Otherwise, I would focus on obtaining a primary residence, then look into income property.&nbsp; Don't forget to maintain some cash in a savings account as an emergency fund.<br/><br/>That being said, if you are ready for the investment aspect of real estate, it is not an easy path, but can be very rewarding (or extremely painful.)<br/><br/>The hunt for an income property depends on your goals and investment plans.&nbsp; Do you want the property to provide monthly cash-flow or are you more focused on a property which will appreciate?&nbsp; A cash-flowing property is sort of like a present-day annuity, where your initial investment generates monthly rental income.&nbsp; A property that appreciates can also be beneficial in the long-term, but may cost you in the short term.&nbsp; Some properties will cash-flow and appreciate, although the cash-flow is usually lower than for properties which do not appreciate as quickly (a sort of buyer's premium, if you will.)<br/><br/>Also, what size investment/number of rental units are you considering?&nbsp; Typically, larger buildings with more units produce better cash flow, but clearly carry more risk and expense.&nbsp; However, regardless of what size building you are interested in, mortgage costs, maintenance costs, taxes, common utilities, additional fees, and insurance must be factored into the overall number.&nbsp; A property manager is also a good idea if you have more than one other unit to look after.&nbsp; The manager provides a buffer between you and your tenants and can handle such things as the collection of rent, service of notices, arranging and monitoring repairs, even paying the bills if you give them permission.&nbsp; <br/><br/>As far as learning about CAP rates, ROI, estimated vacancy rates, and other technical aspects of investing in real estate, it can never hurt to learn as much as possible.&nbsp; These figures help to evaluate your investment.&nbsp; But, as with anything else, letting the professionals help you is in your best interest.&nbsp; Utilizing a Realtor or a commercial Realtor as a buyer's agent to work with you and help you narrow your search is a good starting point.&nbsp; I would also strongly recommend speaking to your accountant (which I assume you have, since you are considering real estate investment.)&nbsp; <br/><br/>Don't underestimate the value of a several hundred dollar investment in the services of a professional.&nbsp; If you do find a place, never buy without an inspection!&nbsp; I know of a $700 inspection of a commercial building that ended up saving the buyers $30,000 at closing!<br/><br/>Good luck with your hunt. Mon, 20 Sep 2010 04:51:00 GMT http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ 2010-09-20T04:51:00Z In Los Angeles, the rental ... http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ In Los Angeles, the rental price is $700 per $100K home value. Mon, 20 Sep 2010 04:04:00 GMT http://www.zillow.com/advice-thread/what-RESEARCH-do-I-need-to-do-before-buying-RENTAL-properties/366895/ 2010-09-20T04:04:00Z