Investment Real Estate Specialist

Aside from my vast expertise in helping clients buy and sell real estate, I have been professionally educated and mentored by Elite Legacy Education and practice what I preach as a real estate investor. I have spreadsheets, pro forma, and tools in my toolbelt to analyze investment properties to assist you with understanding the financials of a property like cash flow and an educated purchase decision. I also have resources for creative financing and vast knowledge of different investment strategies such as long-term and short term investment properties, lease options, social or density housing and much more.

Recently had some parents reach out to me to help them and their son find an investment property. The goal is for the son, early 20's, to live on the property and the parents will be helping out with down payment and they will also reap rewards on the cash flow and equity gains of the property.

Down the line they can use the equity in the home to gain access to a deposit for the son to buy a single family should he choose and they can both keep the rental as an investment long term. This is just an idea of how a family can work together and get that investment portfolio started and the inspiration for today's post!

Investing in your first rental property can feel intimidating.

But did you know there are reliable formulas that can help you determine
whether a property is worth pursuing? It's like playing financial detective
long before a penny ever slips your hand!

While the stuffy, technical term is “real estate pro forma,” these
calculations and formulas are simple ways investors can estimate rental
income, factor in expenses, and anticipate projected long-term gains.

General "Rules of Thumb"

While these pro forma calculations are about as detailed as you can get, there are other general “rules of thumb” newbies investors should keep in mind when perusing properties. Here are four:

1) Location, location, location: Consider factors like desirability, proximity to amenities, and whether it aligns with your target market. A great location can be an investment game-changer, so choose wisely.
2) Cash flow is king: Take a close look at the numbers and ensure that the rental income will cover your expenses, giving you some extra padding for unexpected repairs or vacancies.
3) The appreciation factor: If cash flow is king, let's call appreciation (the long-term value of a property) “queen.” When checking out a property, look into the historical and projected appreciation rates of the zip code and neighborhood to see what it might be worth down the road.
4) The 1% rule: Experienced investors say the monthly rent should ideally be at least 1% of the purchase price. For example, if you're eyeing a property worth $200,000, aim for a monthly rent of $2,000.

Remember, these are just guidelines, so do your due diligence and consult with experts in your area. The more information you gather, the more confident you'll feel in your decision-making process.
Despite stubborn interest rates, investors who know what to look for are winning right now in our Bristol and Plymouth County Markets.
Want to chat about what they're seeing? Reach out — I'd love to share my resources and connect with you!

Fill out the form below and download the First Investment Property Guide for FREE!

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Investment Real Estate Specialist

General "Rules of Thumb"

Interested in a Free Consult?

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