Purchasing an investment property is a very lucrative venture, should one wish to buy a house or make a business out of it. If you are still a beginner with investing a bought property, it is wise to purchase something that is easy for you to manage and do what you can with it. Take a duplex or any multiple family dwelling properties for example, you can live in one part, and have the other parts rented out. It’s a win-win situation actually, you get to live in your investment, and you can promote positive cash flow for your finances. It’s like hitting two birds with one stone.
Also, if you are an owner of such property, it is wise to venture to another investment property using the finances of the first property bought to gain equity. To “gain equity”’ means that the fair market value of your owned property minus what you owe (including liens). In the fairly competitive world of investment properties and finances it is quite alright to borrow money from equity. You can also use it as collateral to your future loans (just keep an eye on lending sharks).
If you are lucky enough, sometimes you can purchase and investment property at a tax sale. This happens when the previous owner of the said property fails to pay on time or defaults on tax payments for longer periods of time; it is then forwarded into auction. Auctioning can be a very fun thing to do (if you are into these kinds of things) and if you are lucky enough, the bid you will find is on its minimum. It is wise to buy something in its minimum rate so that you would have enough money to reconcile with its finances that includes covering of back taxes plus the expense of the sale. If you find it a tad bit too expensive or if you find it not viable enough for future use, it is okay, for when you have purchased these kinds of investment property, you can still resell it at market value, all you have to do is to fix the property so that it would be affable for rental.
Overall, one’s goal in investment property (and the top goal for that instance) is to gain continuous income, be it renting of the property, buying the property from a low price and reselling it at market value, or by means of renovation and once again selling it at a higher price; the list can go on actually. Hard work is the key to create a successful investment career.