The Reason Why Property Investment is Smart?

When people was asked "What would make it a good investment?" The reply is always "I don't want to lose money, I want it to be worth more in a couple of years. Do you think that will happen?"

If you're buying a property that you intend to hold and lease out, how much of a profit would you need to make every month for it to be considered a good investment? $100 a month? $ 300? $ 500? More? How long would you have to hold a property for you to feel like you made your money's worth? 2 years? 5 years? Longer?In our market, many investors have discovered that they can easily make $300-$400 a month positive cash flow per month based on what the property costs them vs. the rent they can collect.

When you're deciding if that's enough for you, remember to calculate all your expenses.Typical expenses on an investment property include:

* Principal and interest, if you financed the property
* Taxes.
* Insurance.
* Homeowner's Association or CIC.
* Property manager's fee.
* Money set aside for possible repairs .
* Money set aside to renew the home warranty you bought next year.

So when determining if a property is a good investment, find out what it will lease for in good condition. Decide what price you would have to pay for it and how much you'd have to put into repairs to make it a place good tenants would want to lease. Make sure NOT to overprice your real estate. Great properties have lots of people want to rent them but not if they are much more to rent than another property.

If the numbers make good sense to you, and you're in the black, then buy it. Have your financing or proof of funds ready, decide what the most you can afford to pay is and go for it.