How To Use Your Property Management Training to Analyze Real Estate Investments

A good property management training manual will show you how to analyze investment real estate before you actually invest.
Common sense, you might say, but it’s surprising how many real estate investors who are pretty astute when it comes to investment property management overlook this point.
Buyers of real estate for rent will always look at the comparable sales of similar property, what the market rents are in their chosen market area, and what the general condition of the trade area is like for the property they’re thinking about investing in.
Without a doubt these are important criteria to consider.
But solid property management experience shows that it is important to think outside of the box and look at other factors that might not be so obvious, but that could have a huge impact on the success of your investment real estate.
Good Property Management Training And Hidden Investment Selectors
Here are some of the other top items we cover in our property management training book to consider when you’re thinking about investing in a rental property:
Foreclosures Sell Your House In 7 Days
I don’t mean the ones that you see, but rather the ones that aren’t on the market yet.
Ask your self what’s in the pipeline. What’s the percentage of underwater homes in the market you’re thinking about investing in?
In some markets the pipeline of foreclosed homes that aren’t yet on the market runs close to 20 years. That’s years, not months.
Interest Rates
If you’re a big fan of leverage and OPM (other people’s money) this is critical for you to think about.
With interest rates as low as they are now you could be sitting pretty if rates start popping up, provided the rate on your loan doesn’t adjust.
Your rental property leveraged with a low rate will be competing with properties financed at higher rates, giving you more discretion in your rents.
Expenses
Thinking that expenses will have a gradual, straight line increase is a rookie mistake to make, and something we cover in our property management training.
If you think interest rates are going to go up, then it’s likely expenses will too.
Tenant Quality Real Estate Online Marketing Tools
In our property management training program we spend time talking about what property type is best of your individual investing personality.
Make no mistake, the type of property you choose to invest in will attract certain tenant types. One type isn’t inherently better or worse than another, but make sure that you’re attracting a tenant type you like dealing with.
Even if you outsource your property management responsibilities to a private company, one way or another you will end up dealing with the inherent characteristics of your investment property.
Markets and Neighborhoods
During the housing boom many markets saw new development way out in the fringe areas.
In ‘the boonies’, if you will.
Now prices in the fringe areas are really cheap. And for good reason.
It’s because housing has become more affordable closer to the employment centers and tenants can now find affordable rents closer to where they work.
Can you blame them?

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