If you are looking to buy a property you can determine for yourself what you realistic and desired return on investment (ROI) should be to make it worth your wild. We can no longer rely on property appreciating every year to even out any loses, and losses do happen. Plus, you have to factor in the cost of carrying the property, updating the property, maintaining the property and managing the property.
Look for a real estate professional that is an expert in the area of the city you are interest in buying in. Talk to a financial professional about a realist ROI and find properties that could deliver that, factoring your total cost versus market rental rates. Be prepared to have a net loss for the early years.
I hope that is not too technical I am a real estate broker and a CPA.
You may have a high capital commitment a low rate of return, but liquid and increasing in value.
You have to evaluate your tolerance for risk and do your homework on price, area, demand and expense.
Sohail A. Salahuddin | Founder and Team Leader
Innovative Property Consultants Group | Sales and Leasing
Jameson Sothebyâ€™s International Realty
425 W. North Ave. | Chicago, IL 60610 â€¨
O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030
"Extraordinary Service For Extraordinary Lives"
Not really Joe. It really depends on how you purchased the property. Usually profit is made during the purchase. If you owe a lot on the property you may make $50.00 a month. If it's paid off you can make up to or over 85% of the rent amount.