Investment Properties return factors to consider

If your planning on buying investment property the following factors must be considered: (1) The current condition and amount of maintenance the property needs now, (2) How well the current tenants and future tenants were screened to see if the current rent or future increases in rent are with in current renters budgets, (3) The cost of know or discovered repairs or improvements and if rents, increases in rent or additional loans are needed. (4) The amount of groos or net profit and loss to cover mortgages, taxes, expenses, etc. (5) Your avaialable time for maintence or management or the cost of additional labor to do this for you. (6) Your rate of return, profit or loss anticipated, bookkeeping of expenses, taxes, unforeseen factors that may arise. (7) A vacancy rate of at least 10%(or more) for each year to accont for late or unpaid rents or renatl losses from vacant units. Better screening, fully updated units with excellent workmamship, high rents with good ontime payment rental history and written leases, and low maintenance property monthly maintenace will amount in higher reliable returns. Poorly screened tenants, unmaintained properties, missing written lease or tenant at will agrement, older less updated unis with do it yourself prior owner repairs will likely result in low returns, possible losses, and higher vacancy/non rental income an the likelyhood of eviction or court costs and unforecseen expenses that will cut in to expected rate of return. No two properties are a like so the more data you have prior to & during the purchase the better equiped you are to judge your future and current costs and expenses to see if you have a reliable rate of return.