Question: Hi Cameron, I must not be seeing eye to eye with many investors that I've spoken to. I'm into buy and hold properties and I'm thinking of making my first purchase soon. The thing is, I know that purchasing and financing a home for a really good (cheap) deal is always a plus. But when it comes down to it. Isn't just buying a good quality property at normal price and renting out for a monthly cash flow a good thing too? Instead of waiting for that one deal that could take months and months to get. Why would it not just be a good idea to pick from the plenty of houses on the market at average cost and make sure you cash flow from the rents for the next 20 years? Wouldn't this type of thinking result in investors getting even more homes and even more cash flow?
Answer: Hi Morgan, Since you're a beginning investor, I'd recommend that you buy a regular ol' move-in-ready property. The key is doing your due diligence to make sure that it will cash flow. Keep in mind that most great deals aren't seen with the eyes, they're seen with the mind. What do I mean by that? Price is just one factor to consider when evaluating a deal. Terms are just as important. So if someone is stuck on finding that property for fifty cents on the dollar, they're going to miss a lot of hidden deals. So to answer your question, I believe that you're right on point with your philosophy. Especially since you're new to investing.
If you have a different opinion or just something that you'd like to add, please feel free to leave a comment below.
This is not legal advice. Please contact an attorney for professional legal advice.
This is not legal advice. Please contact an attorney for professional legal advice.
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