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Pros & Cons of Investing in Real Estate (Buying a single family for personal use, renting or buying rental property, or even land.) This section is designed to help you think about your investment. It is a lengthy section, but by the time we finish it, I think you will find that it may help you no matter how long you have been involved with real estate. We are currently building this section and will be happy to hear some from you. I would like to explain how I work so that you may better begin to understand how this section is written. I believe in helping people learn the facts about the decisions they need to make, and I believe that each persons decision is different based on what is good for them. Therefore without knowing you extremely well, I cannot tell you if you should decide one way or the other on something. What may be a positive item for one client, may be a negative for another. I could give tons of examples on this matter and for that reason I will give a small list of items below and tell you what I may rate them as and as you go through the list you can decide if your answers are different, I think you will find that they will be on at least a few of these. Things to consider to see if they are a positive or negative for you. 1. I have a dog which is fine if you own your own home, but can be a drawback to finding a good rental. 2. I live in a large city, which can be a downfall if you do not like to drive in busy 6 or 7 lane roads. 3. I like green lawns but the downfall is the time it takes to maintain as opposed to desert landscaping. 4. I prefer owning multi housing investments as opposed to single family dwellings. The reason being that if you have one vacancy, it is easier in a 4 plex than in a single family home, based on the math financials, I make more money, but the down side can be the number of people to deal with. 5. I prefer a two story home to a single story home, I like having more yard space and still having a large living area. Some people do not like having to walk up stairs. 6. I like homes with a front porch, neighbors get to know each other better. And it has been proven that in an area where the neighbors talk regularly, less crime occurrs and more criminals are caught. However, this does not go well, if you like being alone a lot. 7. I prefer sunny days to rainy ones which works well when living in Phoenix, but I would most likely not want to live in Tacoma, Washington. 8. I love spending time at the ocean. Not a good idea to live in the desert, but sometimes you have to weigh your pros and cons. 9. Recently I have decided I would like to not be on call 24 hours a day and 7 days a week, therefore it is not a good idea to be a self managing landlord. 10. I am finding that many people currently are bringing in offers on sellers properties that are planning to do an 80/20 loan basically meaning to afford to buyer they are doing two loans, many times I have seen this before, but just yesterday I realized that one of these offers did not appear that they had explained this to a buyer, and if you are a buyer considering this, you must truly know what it will cost you, many times it is not the way to buy, because the payments will be so high that you may end up in preforclosure. Always try your direct lenders first for one loan and save your money for a down payment so that you can save tons of money in the future. Back to the Investors Corner Main Page Back to Acres Realty Main Page See our Index of other pages at our Site
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