Buying an income property in Paralimni or
buying income properties in Famagusta will give you maximum returns and profit. When buying an income property there is a list of things you should be conscious of.
1. Is this income property in good condition? Evaluate the expenses of necessary repairs and renovation before you make a decision on buying a rental property.
2. Location is one of the primary concerns when
buying an income property. If this income property for sale is located on a busy street, it will be harder to attract tenants who prefer peace and quiet. Try buying income properties near a parks and/or good schools. An income property like this will likely attract families.
3. As the new owner you should know if this buying income propertie was used as a rental property in the past. If you decide in buying an income property learn if this property has garnered a bad reputation, because it will be tough to dispel.
4. Are there tenants on the property? If you are buying income property with existing tenants on this property you will need to honour any current lease agreements with them. You won't be allowed to raise their rent until their leases expire and you may be subject to state laws.
5. Can you handle the needs of an income property? If you are unable to repair a property or maintain it, you'll probably need to hire a professional, such as a property manager. This will cut into your profits. However, it will be beneficial in that you won't always have to be present to handle any problems that arise. New landlords should be very careful about buying property they can't oversee themselves. Even if you do hire a property manager, you should be able to visit the property on a regular basis.
6. Buying a rental property means that you are a buyuing a part of the neighbourhood. Even if the rendal property you're buying is in great condition, take a look at the surrounding dwellings. Check if they are well maintained. Are there any problems with other neighbourhood residents? This can greatly affect your ability to attract new tenants, and may result in a high turnover rate when buying a rental property.
We offer a big selection of rental properties for buying in Famagusta: Paralimni, Derhynia (Derinia), Sotira, Frenaros (Frennaros), Brisoulles (Vrisoulles), Liopetri and Larnaca (Larnaka).
if the area has a bad reputation. You may also need to provide security for a property, if the neighbourhood has a history of problems. Research the neighbourhoods crime statistics as well as the turnover rate for other properties.
7. Is the price right? If you're going to rely on your rental income to provide mortgage and tax payments for a property, make sure you'll be able to make these payments, even if the property isn't at full occupancy. It may take some time to fill the property, leaving you with a shortfall. Also take into account other expenses, such as repairs and general maintenance. If the numbers don't add up, keep looking.
In addition, make sure to read these articles:
Investing in Real Estate
Charging a Security Deposit on Your Rental Property
Consent Assignment of a Residential Lease
Am I Liable for Injuries Sustained on My Rental Property?
Are There Any Benefits to a Month-to-Month Rental Agreement for My Rental Property?
T T T Print Email Digg It del.icio.us Related Resources
Forms
Landlord/Tenant Kit (Residential)
Landlord/Tenant (Commercial) Kit...
Warranty Deed
All Forms
View More
Business Directory Listings
Real Estate Investments
Get Information on Real Estate Investments at RE/MAX.com.
1031 Exchange Options: Real Estate Investments
Advises and helps clients strategize their next real estate investment. Also includes 1031 exchanges, TIC ownership, Triple Net Lease, and REITs.
Real Estate Investments: S-NET-INVEST.com
The source for net investment real estate. 1031 eligible. Management, finance, tenants in place. Invest $50K-$2.5M. Receive net income, monthly check.
Defer Taxes with a 1031 Exchange
Learn how easy 1031 exchanges can be. Fast, simple, secure, nationwide. Low cost, only $400, no hidden fees. Let Bayview help plan your strategy.
Question: Three years ago, I bought eight single-family rental properties. They have appreciated, but I have negative monthly cash flow. How can I get a no- or little-money down deal on a multifamily unit with positive cash flow?
-- Hisashi Nagashima, Schaumburg, Ill.
Hisashi: Before you buy any property, ask yourself, "What's more important, appreciation or positive cash flow?" Single-family homes in the most desirable neighborhoods may appreciate quickly, but because their carrying costs are high, they rarely generate the sort of income needed for positive cash flow. Multifamily units that bring in the bucks each month are likely to be in more modest parts of town and aren't likely to show as great appreciation. You can't expect to dine on T-bone steaks when you're raising roosters.
Then, check track sales records, which you can get from the listing agent or on Web sites like Domaina.com. If appreciation is your goal, then only look at homes that have appreciated well in the past, bearing in mind that the market is cooling. If you want guaranteed positive cash flow, insist that your real-estate agent show you income-producing properties with favorable balance sheets and with established, reputable tenants. Make sure that you see the income and expense statements for these properties for at least the previous two years. Pay attention to what's been done in capital improvements, and what you can expect in terms of maintenance and repair costs, association fees and other expenses.
Most investors want positive cash flow and stable tenants, so don't rush your search. Don't believe those self-appointed gurus who say you can waltz into any town and find a terrific deal within a day without putting down any of your own money. If it were that easy, don't you think they'd be doing these deals themselves instead of traveling from one dingy hotel ballroom to the next, touting their "sure-fire" systems? (Also, remember that plenty of amateur investors have taken these get-rich-quick courses, and are already hounding the relatively few desperate sellers who are the most open to no-money-down schemes -- those going through divorce, on the brink of bankruptcy, or who inherited rental property they don't want to manage.)
