Start in a market you know. Whether you focus on, starter homes, fixer-uppers, low-down payment properties, condominiums, or small apartment buildings, you'll benefit from specializing in one portion of real estate investment.

In making your decision, think not only about how much money you want to invest but also consider HOW MUCH TIME DO YOU WANT TO INVEST?

For capital gains, freehold properties are good but they require a lot of maintenance and are best suited to someone who has maintenance skills and is planning to be an active full-time Landlord

If you want to be more or less a ‘silent investor’ then Condo Apartments offer the advantage that all exterior and common area maintenance is already handled through Condo fees and there is a steady supply of renters. Your Buyer Agent can show you which existing Condos have the best combination of Market Rent versus Cost, Fees and Taxes and which New Condo developments are likely to provide the same benefits.

If you want capital gain with minimal work and do not need a steady stream of cash flow, vacant land should be considered. Again your Buyer Agent can identify areas where values will appreciate best.

Some good opportunities also exist in Commercial properties, both free-standing and Condo. Your day-to-day time involvement can be reduced by opting for Commercial Condos, Hiring a Property Manager to take care of the details or making all Leases "Triple Net"

Bear in mind that the easiest properties to Finance are 'Residential' properties of 1 to 4 units. Larger 'Apartment' properties will generally be treated as 'Commercial' for financing purposes.

2. Know your Tenants

Existing tenants may be considering a move. Find Out. Make every lease for at least a year term. Be wary of assuming existing Tenants on a ‘month-to-month’ basis. You might never get them out !

3. Have your Realtor produce a Standard Lease for use with all Tenants                                                                  

In addition to specifying rent, occupants and who pays for what, include specific provisions for renewals, rent increases and ‘showing the property’  during the period after they give notice to vacate.                            

Don’t rely on goodwill. Put it in the Contract !

4. Allow for ALL COSTS at the beginning

Know the financial statements. Know the total operating expenses. Know the loan payments. Know the vacancy costs Know the taxes. Know what the cash flow looks like.

Bear in mind that there will be costs to get Tenants and costs to fix up the property between each set of Tenants. Ignore these at your peril !

5. Validate Service Costs

Ask the local utilities to verify recent utility expenses, whether or not they are included in your tenants rent.

6. Consult Your Accountant

Tax planning is a key to successful real estate investing, so be sure to find an accountant who is well-versed.

7. But Tax laws change

Don't base your tax investment just on current tax laws. A good investment is a good investment regardless of the tax code. The right property with the right total carrying costs is what you should look for.

8. Study insurance exposure

If the seller's insurance is based on lower-than-current replacement value, your insurance cost may be higher based on your purchase price. Remember to always seek the help of your Buyer Agent. They always know the right people to consult to get the right answers.

9. Evaluate Property Values and Rents

The best gauge of a property's value is the current sale price of similar properties nearby. The same holds true for local area rents. Each project should be planned and justified based on a reasonable market rent for the area,type,size and condition in light of the amount of tenant demand for rentals.

10. Do an Inspection

Hiring professional inspectors to examine the structural and mechanical system is a good investment. Make sure that you  have a Professional Inspection before buying any type of Real Estate

For more information simply e-mail paul@buyerscall.com