If you have a property that is currently producing an income, you will want to read further!!
There are 4 key factors to evaluate and determine if the current property will generate an income at the new purchase price.
The 4 factors are
Reduce Expneses
Increase Income
Decrease Vacancy
Offer a Lower Purchase Price
As you evaluate a current income producing property, you will perform due diligence to evaluate what can be changed to help the property produce the income you need it to for the time you hold it. In some cases, you will find that you can change only a few of the factors, instead of all or most of them. If the property can still cash flow with these changes, it might be a good income property to acquire. If not, it will be a property to pass on and follow up with the seller later to see if it is still avaliable.
In some areas, you will not be able to reduce the expenses or increase the rents based on what the market dictates. For instance, you might have to include utilites in some markets to keep the occupancy up or you might find rents are trending downwar, so you need to keep the rents at what they are or lower them to keep occupancy up.
These 4 factors will help you evaluate and dig into the diligence on the property a bit deeper. It will help you determine what price to offer and what you need to do with the property in what time frame to make the deal work!!
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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
If you have a property that is currently producing an income, you will want to read further!!
There are 4 key factors to evaluate and determine if the current property will generate an income at the new purchase price.
The 4 factors are
Reduce Expneses
Increase Income
Decrease Vacancy
Offer a Lower Purchase Price
As you evaluate a current income producing property, you will perform due diligence to evaluate what can be changed to help the property produce the income you need it to for the time you hold it. In some cases, you will find that you can change only a few of the factors, instead of all or most of them. If the property can still cash flow with these changes, it might be a good income property to acquire. If not, it will be a property to pass on and follow up with the seller later to see if it is still avaliable.
In some areas, you will not be able to reduce the expenses or increase the rents based on what the market dictates. For instance, you might have to include utilites in some markets to keep the occupancy up or you might find rents are trending downwar, so you need to keep the rents at what they are or lower them to keep occupancy up.
These 4 factors will help you evaluate and dig into the diligence on the property a bit deeper. It will help you determine what price to offer and what you need to do with the property in what time frame to make the deal work!!
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125