The best way to pick a residential investment property is to buy a property that has about a half acre of land.  This is usually big enough to give some space while not having to much property to upkeep.  Also, pick one that is in a safe location with similar properties.

A speaker once told us to follow these rules:

Never buy a rental where you have to carry a weapon to collect the rent-

Never re-sale the property if  possible

Always buy a property with about a half acre in a nice location in case you have to re-sale.

Buy properties with newer roofs,  windows and HVAC systems.  People really like garages, if possible buy one with a garage.

I am testing the waters of real estate investing.  I bought my first rental property last spring.  It was a foreclosure.  While completing the GRI program, they had a speaker there on investing in real estate.  He had so many good reasons everyone should be doing this and I will share these over the next few days.  Today, I want to share with you my simple property and how it works for me.

I bought the foreclosure for 115,000.

1989 model with a new roof and replacement windows in place on half an acre.

3BD/2Ba

It rents for 800 per month.

If my 115000 were in a CD it would bring about 4600 per year.

Rent for a year is 9600 less taxes and insurance. Balance then is a little over 8000.  I clear an additional 3440. per year by having my money in real estate rather than a CD.

Next topic :  How to pick a good property.

We live in a very moist and damp environment here in Elizabeth City and Northeastern North Carolina.  We tell our sellers to be prepared to clean up any mold around their home, especially on their wooden decks.  A 50/50 mixture of bleach and water will work.  This makes a huge difference in the appearance of the home. 

It was about a year ago the housing market began to falter.  Even North Carolina is feeling the effects.  I read an article that explained our situation in a different light.  Their take on the problems started back in 2001 with a recession and 9/11.  The federal reserve dropped interest rates and flooded the economy with money and credit.  THE BORROWING SPREE was ON!  There is belief that those with money wanted to put it in a safe place after the dot.com bust.  Tax laws were changed to eliminate income taxes on profits from the sale and the buy was on!  The ARM loans adjusting and the falling prices prevented those who could not keep their head above water, from selling.  They would have to bring their money to the table to sell out. 

This has lead to fantastic deals for those who do have money.  Between the foreclosure market, short sales and price reductions, there are wonderful opportunities waiting to be had.

It's the news of the day!  My website is live and I want to tell the world!

Let's talk real estate...   a fun and exciting venture.