Asked by: Benedita Biguri
asked in category: General Last Updated: 1st March, 2020

What makes a good real estate investment?

Real estate is generally a great investment option. It can generate ongoing passive income and can be a good long-term investment if the value increases over time. You may even use it as a part of your overall strategy to begin building wealth.

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Just so, what is the best type of real estate investment?

The best commercial properties to invest in include industrial, office, retail, hospitality and multifamily projects. For investors with a strong focus on improving their local communities, commercial real estate investing can support that focus.

why real estate is a bad investment? Low Returns and High Expenses Real estate investments are known for providing low returns. Traditionally, the returns on real estate investments have been less than the rate of inflation. This is what makes realty a bad bet for the middle class.

Keeping this in consideration, what makes for a good investment property?

Cash Flow & Growth Potential Cash flow is one of the most important factors to consider when investing in a rental property. At the very least, if the property doesn't already have cash flowing, look into a professional property management company. A good third party management company is worth their weight in gold.

What is the 2 rule in real estate?

The “2% rule” isn't really a rule as much as it is a guideline that was created by real estate investors at some point in history that I'm really not sure of. The 2% rule says that for a rental property investment to be “good”, the monthly rent should be equal to or higher than 2% of the purchase price.

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