The first decision you must make before looking for your real estate investment property is on the type of property you want. There are a number of factors to consider before you make your decision because each different from the others.
What to look for
1) General Location – Location is the main in real estate. Unless the property is located in an area that would maintain or boast rents, and in turn can be sold for a profit, forget it.
2) Site improvements – Does the property requires repairs that might gnaw your cash flow, or there are improvements that can be made which will substantially improve your cash flow and return?
3) The form of the lease used – in the case of commercial buildings is locked to lease favorable or very unfavorable? In other words, you buy income favorable or unfavorable, and for how long?
4) Revenues generated – How much income the property generates income and realistic, and can be maintained? Is there room to increase revenues?
5) Type in the cost – What is needed to keep the property operational? Is there something extraordinary, and there is a possibility that some costs can be reduced or eliminated?
6) Management requirements – Will the property requires a professional management company, perhaps a resident manager, or is it something you can handle.