What real estate moves create certainty?

Question

We live in uncertain times correct? So what moves will make the future seem more certain or stable?

1. Buying below market value, that gives you a cushion if you have to sell, but you still have to sell, and the market can move on you.
2. Having a fixed mortgage. That way you know from month to month how much you're going to have to pay.
3. Paying off the mortgage. While this move doesn't enhance your growth potential, you're likely to get a constant stream of income without having to worry about a mortgage. 
4. Having in homeowner's insurance.
5. Selling a property. This might be against the goal of growing a RE portfolio, but if the property is a liability, selling it may seal off a money drain.

What else?

Rachel H. · Answer

By far, putting in the time in one's financial education is one of the best moves to make in this economy. It's amazing that there are folks out there who call themselves real estate investors yet have no grasp on the basic concepts of personal finance and money. Hope that helps!

Silver A. · Answer

Jordan,

I think you have brought out the most important one first - shop around and buy below market value. You make your money when you buy, and take out the profit when you sell.
 So it's better to make sure there will be a profit whenever you decide to sell it. The trouble is 90% of people fall in love the first property they see and do not shop around to find the one where numbers truly work. 10% below market value is better than purchasing at market value, but I would say 20% discount is the goal to aim for. Even if it means looking at 30 different properties in 2 months before making the purchase.

In general setting aside 10% of ones income for rainy days is the best advice I have read and it works. Just have to be patient enough and make it a habit.

And learning from every mistake to make sure not to repeat it! ;)

S.