Hi, I’m new to the forum and new to investing. I plan on purchasing an investment property by the end of the year, my plan is to buy and hold the property for long term wealth. I am looking in the Fort Worth Area as it seems the economy is good there, specifically Arlington.
My question is, in general how do you know where to purchase buy and hold properties so you actually make money on the property when you rent it out, any advice is appreciated.
Market analysis. You may find that the market you mentioned isn't good for rentals. Just because the "economy is good" in an area, doesn't mean it's a good area to invest in RE.
Agree with Joe, bought 2 rentals about 5y ago. Great value at the time, but home prices have increased almost 50% since then. Tough to find value especially in market that may not be familiar to you. Others may have a different opinion.
@Tyler Wisner you have some good suggestions above but many "buy and hold" investors look for 3 method of income on investment properties:
- Appreciation of the Property - Meaning the local economy is strong enough to support a healthy housing market
- Principle Buy Down - Meaning every payment your renter makes to you pays down the principle balance of the mortgage
- Cash Flow - the amount of money you earn each month that is OVER and ABOVE your expenses on the property
If you find a market where you can have these 3 items you should be able to have a good market to invest in. Hope this helps!
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