Year of the Cash Buyer

**Home-Flip.com** · 01-30-2011, 05:47 PM

Remember the great days of investing in real estate... When you could buy a property and sell it for double the price just months later. Those days are behind us. Were now in the Buying and Holding market. So investors today need to think long term. The properties you should be interested in are ones that you purchase at a lower price, are under valued, need work and you can also hold onto it while it's being rented.

For example, A client of mine paid $40k cash for a 1 bedroom 1 bathroom condo that has no rental restrictions. The monthly fees for this condo are as follows:

1. $100 a month for Taxes
2. $200 a month for Maintenance fees

This condo can be rented for $800 a month and if the fees total $300 a month, then this property is generating a net profit of $500 a month. That totals $6000.00 a year. Within 7-8 years you can make back all the money you spent on the condo. At that point you can sell your condo for whatever the current prices are and you will have a significant profit. Or you can hold on to the rental and have a secure income you can rely on.

There are so many great foreclosure properties that a cash buyer can benefit from. As an investor you need to make a solid investment for a solid return. Only purchase properties where there are few restrictions so you have the freedom to conduct business as you please.

Just think.. If you had 5 rentals just like this. You could make $30,000 a year and not have to do anything!

Darius Lelutiu
Licensed Real Estate Agent

**Dacelle Pano** · 02-03-2011, 01:17 AM

In investing property or land, it was important to think perfectly your long term plan than the short term plan. Know if you were benefited in the property that you bought.

**Bones** · 02-03-2011, 09:43 AM

It seems to be a great time to invest in rentals with prices being so low and the rent people are charging doesn't seem to be changing at all. The demand for residential rental property is still high in my market, commercial property is another story.

**Yballe55** · 02-07-2011, 08:18 PM

Investing in Condos are the right investment this year. People are prefer to rent first before buying houses. Because some people have no enough budget in buying house that's why they tend to rent first until the time that they earn money for their house.