When it comes to cash real estate investing, it can be hard to determine what exactly it is that you want your long term investment to accomplish and how much is too much work to get there. Generally, investors that deal in cash real estate investments are looking for a way to get the highest and fastest return on their venture and a rental property definitely fits such criteria-if it is in the right condition at the time of purchase. Experienced real estate investors buy and sell rental properties based on their return on investment potential.
Many real estate agents and brokers have the mindset that rental property investors are only going to want a property that is in prime condition, but this is not always the case. A cash real estate investor will look at a property and assess what is needed to bring it up to a rental standard. It is the potential income stream of a rental property that truly makes it a worthwhile investment.
It is important for cash investors to “run the numbers” when it comes to a rental properties potential. Will the cost of rehabilitating a property allow for enough of a rent increase to make it a solid return in investment. This takes a consideration of other rental amounts and conditions of other rental properties in the area.
When you are considering investing in rental properties, there are a number of factors that are not always important. A beautiful, immaculate rental property may not offer a high enough return on investment to make it profitable, while a rental in need of basic repairs could be the big cash real estate investment opportunity an investor is looking for.