I have 200k cash and am looking to buy a nice rental in miami or miami beach. Is this the best decision for me so i can maximize my profits? Ive seen some nice 12 unit apartments on the beach going for 1.3 mil.
Joker,
In my opinion, the ONLY reason to own rentals is to make money. I don’t buy rentals unless I get both cash flow and equity. Evaluate each deal on its merits. Is buying a building in Miami Beach a good deal? SHOW ME THE NUMBERS!!!
Mike
Where are you located?
Ive lived in miami my whole life and am 18, me and my friend who ive known all my life are going to go into the r/e buisness together. I already have a CPA, tax lawyer, r/e lawyer and broker. Im pretty new to it since ive only read one book so far. Id like something on the beach or in coral gables because these are the nicest spots and i believe they will appreciate the best am i correct? Im looking for something like this :
http://www.realestatemiami.com/Listings/ListingDetail.ASPX?LID=17395118
If im not mistaken there taxes say they do pretty well when it comes to income and profit but correct me if im wrong.
Of course no one in the right mind would go and buy a 1.5 mil starter into the r/e buisness and im not going to either. We will probly buy a 100k duplex first and own that for a good amount of time till we learn all the in’s and out’s.
Another question i have is it worth going to r/e club meetings in your area? Do they teach you alot or just waste your time?
All suggestions and comments are welcome thanks.
joker,
You are not even close to being ready to buy an investment property. The very fact that you are posting these general questions says that you don’t understand the business. Real estate investing is all about the numbers. It isn’t about generalities. Specific, real world income and expense data are what’s important. The vast majority of new investors fail in a short period of time because they don’t understand this.
Study, do market research, and join your local REIA. Make friends with the SUCCESSFUL investors and learn all you can. Develop a business plan that will ensure success. Only then should you consider buying an investment property.
Good Luck,
Mike
thanks for the advice i never said i was ready i even said i didnt know much because ive only read one book. The advice was helpful though thanks.
So you do live there, that’s good. I was hoping you weren’t an out of state investor with an eye on that market. Knowing the area will certainly help down there, its a tricky market to navigate. Regardless of where you are I think its always best to start local. Pick up some good books and get reading. I wish you luck.
Thanks, i was wondering for rentals what would you say a good down payment percentage is for high cash flow say around 1k a month. I know there are many other factors to consider but just in general im asking.
bump