Introduction to real estate investing
Real estate investing involves purchasing property to generate income, build equity, or both. It's one of the most popular investment strategies and can provide both cash flow and appreciation.
Real estate offers diversification from stocks and bonds and can be a hedge against inflation.
Buy properties to rent out for monthly income.
Real Estate Investment Trusts - stocks of real estate companies.
Buy, renovate, and sell properties quickly for profit.
Pool money with others to invest in larger properties.
Net operating income ÷ property value. Higher = better return.
Annual cash flow ÷ total cash invested.
Monthly rent should be at least 1% of purchase price.
Research neighborhoods, schools, and growth potential.
Consider down payment, interest rates, and loan terms.
Budget for repairs, property management, and vacancies.
Deduct mortgage interest, property taxes, and depreciation.