Would you consider a newly built single-family adjacent to TX in Mississippi with positive cash-flow in the $120 to $150 per month range, and about $27,000 in immediate equity? You will also benefit from higher appreciation given where our development is located, and property taxes are lower than they are in Texas.
Feel free to contact me for more information.
Continued Success,
Marco Santarelli
Norada Real Estate Investments
(949) 218-6668
www.NoradaRealEstate.com
Your Premier Source For Real Estate Investments - Thu Dec 13 2007, 08:06
You have several options open to you. Part of it will depend on whether you are rolling your funds from the sale of another property using an IRS 1031 exchange. However, assuming that you are not doing a 1031 exchange, you can invest in depressed markets that you believe are their way to a recovery. You will need to do a lot of due diligence in order to find that out of course. This would be the beginning of the new expansion cycle.
Second, you can invest in current appreciating markets. There are several of them peppered throughout the country, however these are typically markets that hold themselves well during good or bad real estate market cycles. These are also single-digit appreciation markets, so don’t be expecting the double-digit rates we’ve seen 2 to 3 years ago. This is a more conservative strategy, but you should not expect to see large gains in the short or medium term.
Last but not least, you can take a somewhat conservative approach while achieving double-digit appreciation through a well selected land development project. Here you are able to invest for up to a five year period with double-digit returns and your investment is typically secured by the real estate itself. I mention this option because it is one of the areas our company is focused on given our current real estate climate. If you are interested in more information, we can email you a Prospectus.
I hope that helps to stimulate some thought. Please let me know if you have any questions.
Marco Santarelli
Norada Real Estate Investments
(949) 218-6668
www.NoradaRealEstate.com
Your Premier Source For Real Estate Investments - Tue Dec 11 2007, 12:21
Generally speaking, you are better of investing in single family homes that townhouses. The primary reason for this is the resale. Signle family homes tend to have the greatest buyer market size. Even though the townhouse may cost you less on a price per square foot basis, the long term benefits of a SFH are better. In many markets rents are about the same between the two as well, but the SFH will have more appeal to the typical renter. That is why we focus 75% of our member’s investments on SFH and duplexes as investment properties.
Although Mississippi is one of the hot markets we are building up to 1,500 SFH for investors, the answer to your question is as wide as it is deep, and it can literally fill a book. But in an effort to give you a little direction:
1. Assuming your plan is to hold the property for 5 years or more, consider areas that have economic stability, as well as population and job growth. Do not invest in areas that display any stagnant economic factors. This is very important.
2. Make sure that the property will carry itself given your down-payment capacity. That means whatever you put down on the property must produce a Net Operating Income sufficient to cover your debt-service (mortgage payments) and leave something left over. Look for properties that have a capitalization rate (cap rate) of at least 7.0% or more.
3. Try to find investment property that also gives you immediate equity on your purchase. For example, all of our real estate investment properties provide positive cash-flow, but we structure the investment so there is some equity too. This is not as hard as you might think if you know where to look, and know how to structure the deal.
4. Last, but certainly not least, seriously consider the tremendous opportunities available to you in other out-of-state real estate investments. Duplexes and triplexes can make a very good addition to your buy-and-hold portfolio. You may also want to look into areas that have limited investor competition such as our 38 duplex development in Chandler, Indiana. The major advantage of a smaller development is the reduced risk of market saturation, as well as reduced rental competition. Again this is a subject matter that can fill a book all by itself.
This is only a brief answer to your question. You are welcome to call us if you would like some additional tips and guidance on making the best decision.
Continued Success,
Norada Real Estate Investments
(800) 611-3060
www.NoradaRealEstate.com - Tue Nov 6 2007, 09:17
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