21 min
3 Up and Coming Real Estate Markets V12 Bat
-
- Business
To spoil the beans, they are:
Memphis, TN
Cincinnati, OH
Detroit, MI
I talk about what to do if you have $100k and looking to purchase a house. First of all don't buy a house you are going to live in. That is usually a bad investment strategy because the chances are where you live is not where the real estate market is the hottest. You need to find a location where you will cash flow.
The next step is to refinance the property you purchase so you can free up some of the equity you put into it, aka the cash. Most bank will give you a loan for up to 80% of the value of the property. These loans are typically easier to get than for example a loan to purchase a car.
Finally you can increase your CAP rate even more by waiting a few years so the ratio of the interest to principle goes down. This is an important factor because when you get a 20-year mortgage you in essence are paying it back even though you are cash flowing. So you divide the total amount you borrowed by 20 and you add that additional income to your CAP rate calculation.
To spoil the beans, they are:
Memphis, TN
Cincinnati, OH
Detroit, MI
I talk about what to do if you have $100k and looking to purchase a house. First of all don't buy a house you are going to live in. That is usually a bad investment strategy because the chances are where you live is not where the real estate market is the hottest. You need to find a location where you will cash flow.
The next step is to refinance the property you purchase so you can free up some of the equity you put into it, aka the cash. Most bank will give you a loan for up to 80% of the value of the property. These loans are typically easier to get than for example a loan to purchase a car.
Finally you can increase your CAP rate even more by waiting a few years so the ratio of the interest to principle goes down. This is an important factor because when you get a 20-year mortgage you in essence are paying it back even though you are cash flowing. So you divide the total amount you borrowed by 20 and you add that additional income to your CAP rate calculation.
21 min