When you are ready to make an offer on a rental property, there are several methods used to determine the value of the property. Based on our experience, the listing price of the property is usually a little higher than the actual market value. As a real estate investor, you always want to purchase the property below market value. Purchasing the property below market values gives you instant equity. The day you go to settlement, and sign the documents, you’ve already made a “paper profit” on your investment.
For more information on a simple analysis of the methods used to determine the value of the property, click here. For more on evaluating real estate investments, click here. For beginner real estate investors, it is very important to minimize risk! Therefore, do your research and proceed carefully!
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