Buying investment property can be a fantastic way to build wealth and meet your long-term financial goals.
In today's market (Spring 2017), buy-and-hold investors in the Central Kentucky area can routinely find deals yielding:
- Cash-on-Cash Returns of 15% or better;
- Cap Rates running anywhere between 8%-10%.
These yields assume Class-B SFR. Multifamily yields can be even better.
If you're considering buying an investment property - especially if this will be your first - please give me a call today. It's a topic I'm passionate about, and I'd love to discuss your plans and answer any questions you might have - even if you decide not to use me as your agent!
First Time Investors
For new real estate investors, there are several great resources available.
One great tool is the BiggerPockets website, where you can learn about real estate investing and connect with other investors. This network explains the ins-and-outs of analyzing deals, evaluating risk, and screening tenants.
You should also consider participating in the monthly meetups of the local Real Estate Investors Association.
There are a couple key preparations you can make to facilitate your first purchase.
First - and most importantly - is to get your finances in order. You'll need at least some cash to get started buying investment property, so start saving now. In addition, take steps to ensure your credit scores are as high as possible. This is critical in order to obtain financing at terms that permit positive cash flow.
Second - begin the habit of keeping good records. Real estate investing requires disciplined bookkeeping of income and expenses, and lenders will always need detailed income and financial statements.
Making the Leap
It is all too easy to succumb to 'paralysis by analysis', by getting so bogged down searching inventory and analyzing potential deals. If you're ready to get your investment plan started, give me a call.