3 Things that make a good Real Estate Investment

Investing in Real Estate can be quite profitable with the right investment.  3 things to look for when first starting out to look at investment properties include looking at properties that are low risk, provide cash flow and are located in appreciating areas.


Low Risk

When first starting out to invest in real estate, it is best to start with smaller investments, learn from them, and then continue to grow your portfolio.  Ideally, you want to invest in property that will be in high demand such as a starter home.  To reduce your risk even further, it is best to work with a Realtor that has experience in real estate investing that can help you not only in obtaining a property but can also help you analyze an investment, help you with finding tenants and and help you build your team of professionals including lenders, lawyers and home inspectors that will reduce your overall investment risk.


Cash Flow

Finding a property that will provide you with a positive cash flow also helps to make a good investment.  Cash flow simply means that your expenses to carry a property or lower then the revenues generated.  If the rent you receive from a property every month covers the mortgage, property taxes and insurance and there is still money left over, then you are receiving a positive cash flow!


Appreciating Neighbourhood

Location!  Location!  Location!  This is one of the things we always hear about when buying real estate.  Buying a property in a growing neighbourhood will reduce your risk as there is a greater chance that the property will increase in value over time.  Communities that are growing, where new jobs are being created and infrastructure is being developed will create a less risky investment that may have the potential to generate great rates of appreciation!



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About The Author

Sonja Skye

President & Founder Sonja is our Rent To Own Specialist who will take you through the application process, help you find a home and work with our team of investors to purchase the home for you. She is experienced in real estate investing and is the author of Stop Renting, Start Saving. She is passionate about helping people build wealth through home ownership and will guide you through the entire process.