I talk to a lot of new and seasoned investors every week. When they are new to investing in my area I always go over the way to make money with their portfolio and "mistakes to avoid"
In every city there are areas you do not want to invest in. In the Cleveland Area it is East Cleveland. You can buy properties their for $1000, but is that a good deal? No! The mistakes in buying in that type of area are in 3 parts.
The first part is the equity positions in those types of areas are very weak. People do not want to live their they have too. The second part is the quality of tenant you will get? Poor to very poor so even if the return is 30% you won't see anything close to that without quality tenants. By the time you pay to evict and get another renter your losing money. Those types of properties usually turn tenants 5-6 times a year. You do the math. The third part is insurance is very hard to get and expensive. The crime rates in those areas are high. Example: I know a contractor during the rehab had to replaced his heaters and water heaters twice in a duplex. He had to install a special door and bar the windows. The door cost $800 alone. So the cheapest properties are usually the worst ones to get because of the area.
Same thing goes with construction. I had a company call me to help finish there homes they had purchased for their investors. I personally toured the homes and gave them bids on those homes. They wanted me to do them for half the money I quoted. I of course did not do their clients investment real estate. They are currently not getting their clients properties finished and they will be having some very unhappy investors.
The good news is we have a system that avoids those mistakes and makes you a great return! We have all the real estate agents,construction,property management under one roof. We finish properties and get the cash flow rolling. We've finished and rented over 200 properties that get the markets top rents and returns. With our unique marketing approach we get our investors properties filled quickly with quality tenants. The average stay per tenant is 18 months.
So avoid the mistakes in Investing in Real Estate and join with Rooftopinvestment to build your profitable portfolio and get your monthly nest egg in good quality real estate. Brett Young Valley Realty.