Choosing your First Property
New buyers are usually very eager to get started; the problem is, they aren’t sure where to get started. What kind of property should you buy? Residential or commercial? Single-family or duplex? What price range should you aim for? Should you pick a specific area or neighborhood?
Obviously, the answers will depend on what you want to do. Some already have a generic plan and only need some guidance. Whether you have a general plan in mind or are just starting fresh, purchasing a house that you can rent out is the safest route.
Your first property should be a single-family home, a duplex, a mobile home, or a quad. The cash flow it offers is better if you buy one of the cheap houses for sale in a low-income residential neighborhood; the downside is that it doesn’t appreciate quickly. The reason this is the safest route is that you see the fastest return on your money.
On the flip side of the coin, if you buy a house that costs slightly more but is in a more excellent neighborhood, the cash flow from monthly rent may not be as high, but the house will have a better appreciation rate.
You’ll make an even better return if you purchase a duplex. This way, you’ll get double the rent! And if one of the units is empty, you still have the one unit making you money.
Are you a first-time buyer? Realnet can help you build your portfolio! We have a large selection of South Florida real estate foreclosures for you to choose from. buying a property is an adventure, and we can be your guide!