What Type of Real Estate Investor am I?

Learn How to Buy Your First Rental

 

 

When entering into the world of long term investing (LTI) it is important to figure out what type of investor you wish to be.  I’m sure you’re wondering what I mean by type of investor.

Isn’t an investor an investor?

Well, no.

The world of real estate investing can be a complex one with many different paths that you can follow on the quest to financial freedom.

Even within the niche of buy and hold properties there are many different paths you can choose to take.

There's definitely no one way street to success with investing in rental properties.

There are a multitude of properties that you can invest in and they will tell you a lot about what type of investor you are.

If you are just dabbling in this career there are many things to think about when deciding where to take the investment plunge.

Take a look at the questions below to help you figure out where you may fall on the investor continuum:

  •  Do I want to rent to students?   Student rentals can be extremely lucrative.  However, you must take into consideration the area, are you near a college or university?  Another thing to consider is the constant flow of tenants and upkeep.

 

  • Do I care more about positive cash flow?  As an LT investor, if you are focused on earning cash immediately you must become a number cruncher.  With a positive cash flow (PCF) mindset, you must do your due diligence in crunching the numbers to see if a property yields PCF.  There must be little to no emotion in this type of investor, it’s all about the numbers.

 

  • Is my focus on future appreciation?  If you’re focus is not so much on PCF but on appreciation than there is one word for you to consider...location, location, location.  This is one of the most important aspects when choosing to invest in property for appreciation.

 

  • Am I looking for something extremely low in price, no matter the area? If you are an investor who doesn’t care about appreciation and primarily cares about just getting a property for as low a price as possible then you must realize that with this comes wishy washy tenants.  Often these properties are in areas that have low rents, which isn’t too much of a problem if you got the property for a smoking price.  Yet, you must keep in mind that with low prices and low rents sometimes comes future tenant headaches.

These are just a few questions you can ask yourself to help you figure out what type of properties you should invest in.

 

Want To Learn More About Finding Properties?

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