tips for successful real estate investment by Magnet Properties, Boulder, Niwot, Louisville, CO
relocation, finding the perfect home, selling properties, investing in real estate with Magnet Properties

Tips for Successful Real Estate Investments
  • Pay careful attention to 3 key areas
    • Income
    • Expenses
    • Financing
  • Run the numbers BEFORE buying
    • Cash-flow analysis before and after taxes
    • Tax Savings or Liability
    • Project the cash-flow for the holding period
    • Disposition plan and overall investment performance over the holding period
  • Select
    • An appreciable area – a well-maintained neighborhood
    • A low maintenance property
    • A property desirable by most people
  • Know the percentage of rental homes in the area – competition, financing restrictions
  • A good lender would advise you on all available financing options
  • Valuate the property based on several indicators taking into account expenses, taxes, financing
    • CAP Rate
    • Cash-on-cash
    • Float & Desire
  • Once you purchased the property
    • Evaluate the rate of return (equity analysis) on your investment every year
    • Depending on your objective, may want to “move” your equity when the return drops below a certain rate
  • Moving the equity
    • Sale
    • Refinance
    • Exchange
  • IRS Publication 527 Residential Rental Property (including vacation homes)
  • http://www.irs.gov/pub/irs-pdf/p527.pdf

Have a professional on your side

Hossein Tolooee, GRI
Broker Associate
Residential & Investment Properties

hossein@magnetproperties.net



Prudential Colorado Real Estate
360 S. Monore Street, 5th Floor
Denver, CO 80209
303-756-2999 (Office)
303-484-3758 (fax)
720-273-4113 (Mobile)