LONG M. NGUYEN, REALTOR - INVESTOR - HOMEOWNER
WHY INVEST IN REAL ESTATE?
- Monthly cash flow income
- Home equity increases overtime
- Debt (mortgage) will be paid down by tenant
- Tax benefit
1031 EXCHANGE FOR INVESTORS
USE 1031 EXCHANGE to sell the house and put the profit into buying another bigger and better investment property like an apartment TAX DEFERRED!
LONG M. NGUYEN, Realtor for Investors
"The home buying & selling process BEGINS and FINISHES with ME, so that there is no interruption throughout the process.”
HOW TO BUY AN INVESTMENT PROPERTY?
STEP 1: DETERMINE
- Location
- Type - Single Family, 4 Plex, Commercial, etc.
- Area type - look for lower vacancy rate, higher rent, value appreciating
School, Transportation, Grocery, Entertainment, etc. - City and County Regulations, and HOA regulation
STEP 2: SELECT
- $800 - $1000 (or more) rent average 3 + bedrooms, 2+ bathrooms, about 1200 Sq ft (or more)
- Fenced/ Blocked Yard
- Open Layout
- Condition of property - need repair? or need major capital improvement?
- Year 1980 or newer (or Less than 20 years old)
- Risk and Reward
- Potential type of tenant
- Cost vs. Profit
- Time and Money
- Amenities of the property (park, pool, etc.)
- Hidden Cost
STEP 3: MANAGE
- Select a Property Manager to manage property and tenants
STEP 4: LONG TERM or SHORT TERM GOALS
- Determine your goal for the property: EQUITY (fix and flip) or CASHFLOW (rent)
- Total Cost of house NEED to be LESS than total rent collected each month for property to cashflow
HOW TO GET OUT OF AN INVESTMENT PROPERTY?
- Do a 1031 EXCHANGE (TRADE UP) to a bigger investment property
- SALE of the property (Paid OFF and Cash Out)
- REFINANCE - reduce monthly payment by reducing interest rate
- CASH OUT REFINANCE - reduce monthly payment and take out equity
HOW TO INCREASE THE RETURN ON AN INVESTMENT PROPERTY?
- VALUE ADDED Activity - paint the property, refresh the property, make repair, upgrades, remodel, etc.
- REFINANCE - reduce monthly payment by reducing interest rate
- CASH OUT REFINANCE - reduce monthly payment and take out equity
HIRE A PROFESSIONAL PROPERTY MANAGEMENT COMPANY
For investors who may pay cash or purchase multiple homes - they can help you save time, earn more money and avoid costly mistakes:
- rental rate estimates
- assess rent readiness
- make repair/ replacement
- suggest improvements for properties being considered as investments
- leave the hassles of property management behind, they can do it for you
This will save time and effort to help you buy more properties.
Detail your services
If customers can’t find it, it doesn’t exist. Clearly list and describe the services you offer. Also, be sure to showcase a premium service.
investing in rental property
DO YOU WANT TO INVEST IN REAL ESTATE?
If you are going to buy a rental income property, then why not buy ALL 4 of them for about the same price? BUY a 4 -PLEX, or an 8-PLEX or even a 32 UNIT Apartment.
For example, when buying a single-family home as a rental property, you get only one rental income check a month. BUT, when buying a multi-family home, such as 4 -PLEX (or more), you can get 4 (or more) rental income checks a month.
CALL ME FOR MORE INFO & LET ME SHOW YOU HOW!
BENEFITS OF BUYING A 4-PLEX
- INCOME - Get MORE than 1 rental income checks
- BENEFITS - Get Tax Benefits
- APPRECIATION and DEPRECIATION – Increase your income and reduce your expenses
RETURN ON INVESTMENT = 10%
Return on investment needs to be 10%, otherwise DON'T BUY. If buying anyway, then do so with CAUTION.
For example:
Buying a property for $400,000
Down Payment is $100,000
Getting $10,000 a year net income = 10% return
So, in 10 years, I will get my money back.
HOW TO CALCULATE INCREASING VALUE WHEN INCREASING RENT
If you increase rent by $75 a month for 12 months on a 272 unit apartment building, then $20,400 x 12 month = $244,800 net operating income.
6% cap rate given originally before increasing rent: $244,800/ 6% = $4 million in value.
4-PLEX FOR SALE in Phoenix, Arizona
4-PLEX FOR SALE in Phoenix, Arizona
4-PLEX FOR SALE in Phoenix, Arizona
Investing in Apartment Buildings
4-PLEX FOR SALE in Phoenix, Arizona
4-PLEX FOR SALE in Phoenix, Arizona
LONG M. NGUYEN, Realtor in Phoenix, Arizona
HOW I INVEST IN REAL ESTATES
If you are looking to invest in real estate, then contact me now. I can show you, how I invest. I have managed rental properties & bought properties for investment for over 10 years.
investing in real estate
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DEAL: BUY at WHOLESALE PRICE & SELL at AFTER REPAIR VALUE (estimate)
