Once you’ve decided that you’re going to start investing in real estate, you need to understand your financing parameters. In some ways, qualifying for investment property financing isn’t much different than qualifying for a residential home purchase. In other ways, it can be a lot more challenging.
It’s not just about how much cash flow you can make, but how much can you keep!
When you’re investing in real estate, you want to keep your eye on the cash flow of the property. This is how much money you’re able to make after you’ve paid all of your expenses.
If you’re considering a real estate investment, you’re most likely picturing the fully finished and furnished home, ready for your tenants to move into. It might be a surprise to some investors when at the time of purchase, their lot just looks like a patch of dirt with nothing on it.
As another year begins, it’s time to start thinking about which new goals you want to set out for yourself. Right now is also a perfect time for you to plan out the real estate moves you need to make.
It’s looking like 2021 is going to be a promising year for real estate investors entering the Edmonton real estate market, especially if supply shocks and provincial rental policies keep driving cash flow deep into the negative in cities like Vancouver and Toronto.
There are many reasons why you feel it’s time to sell a rental property - maybe you’re thinking about selling your rental property after deciding that real estate investing wasn’t for you, or you’re noticing changes in the market that could mean big profits from selling the property you own.
When you buy a brand-new investment property, you’re naturally going to want to get your tenants moved in as soon as possible so you can start paying off the mortgage, building equity and seeing some of that income.
Over and over, we see people making the same mistakes when investing in real estate. To be honest, It’s frustrating! With just a bit more knowledge or with the help of an experienced team, they could avoid the hassles and financial problems that happen as a result of the mistakes they made when acquiring the property.