Purchasing Residential Investment Property? Consider These 5 Issues

While some individuals, purchase multi - family houses, in order to reduce their personal living expenses, many, do so, as an investment property. This article will review and examine, some of the items, one should seriously consider, and evaluate, prior to making the final decision, regarding purchasing, for investment purposes. When purchasing an investment property, one must look at it, differently, than when considering, s private, personal home purchase! While there are many considerations, this article will attempt to briefly examine, and consider, 5 key issues, which, when done properly, significantly reduce the amount of risk.

1. Return on Investment (R.O.I.): When people purchase stocks, etc, they normally attempt to evaluate and consider, the range of yield and/ or return, they anticipate, and use that as a key consideration. With multi - family houses are considered, from an investment perspective, it's important to do, something, similar.

Friends or Family - A Risky Gamble

Remember as a teenager you would probably ask your parent(s) to "borrow" money to go to the mall, movies or purchase something you admired for what seemed like forever. With this request, you probably were greeted with responses like: 'I will give you some of the money, but you must earn the rest' or 'How are you going to pay me back the money you are borrowing". I am not sure why the word borrow was often used but let's be real, how often did you really pay your parents back.

The term borrow is a very interesting word. According to dictionary.com, borrow is defined as taking and use (something that belongs to someone else) with the intention of returning it. As a teenager did you really intend to borrow money from your parents or were you saying whatever you thought would increase your chances of getting the money you wanted to see that movie, got to the mall or purchase something.