subject: Generating a Solid Revenue Stream from Real Estate [print this page] Generating a Solid Revenue Stream from Real Estate
The real estate industry is extremely large and there is a ton of money to be made in it. When thinking about real estate properties that bring in revenue, you can pretty much consider all sorts of properties. However, only a few of them will bring in continual income for a long period of time. You can consider this as an investment which pays off on a monthly basis. Purchasing the right type of real estate property is very important. If you buy into a property and later find out that it will not be able to make a great amount of money, it can be a real waste of time and effort.
A great revenue property could be either an apartment building or a commercial building. Either one of those two would be the ideal business solution, if you really want to make a good amount of money. There are other option such as duplexes, homes, triplexes, land and industrial lots. However, the revenue over investment is much higher when you look at commercial properties. Before you begin considering the numerous properties available for sale, you need to consult with a reliable real estate agent. A realtor knows the industry extremely well, and they will give you tips on where to look for these properties. Some neighbourhoods bring in much more traffic than others, so that is a key point to remember.
When considering apartment buildings, you need to select properties that are very well maintained and close to schools, parks and shopping malls. By choosing a property that fits this criterion, you will always find someone to lease an empty unit. When the building is close to many amenities, you can offer a very competitive rent and people will still be able to take you up on the lease. Before you purchase a property, it is important to have it inspected by a licensed inspector. The inspector will look at the building thoroughly and give you a report. The report will outline some of the work that has been done, as well as what needs to be done.
A revenue property will certainly require you to put down some money towards your principle. The down payments for such properties are sometimes expected to be at least twenty percent of the total price. The amount of money you can generate from the property will depend on the number of units in the building as well as the amount of rent you collect. You need to analyze the situation before your purchase the building, if you intend to generate a good sum of money from the property. In terms of expenses, it is important to consider the mortgage payment, insurance payment and other expenses for maintenance. There are other yearly fees that you need to pay such as school and municipal taxes. However, even with the numerous expenses; you can still generate income from a revenue property.
