A Filter for your Portfolio

You open the newspaper and look at the real estate section and then close it again. It can be overwhelming to see the number of properties available at any given time in the market and even more daunting to try to figure out which ones are right for your investment portfolio. Wouldn’t it be great to have a filter of sorts that you could put them into and it would tell you whether or not you should buy them? Well there is, and you can make it work for you.

This easy filter will save you time and frustration and ensure you are buying and selling the right properties for your investment portfolio. It is really quite simple to work out in that if the gross annual rents are at least 10% of the purchase price you have a winner. For example let’s say you are looking at buying real estate properties for $100,000. If the gross annual rents are at least $10,000 then they will fit your needs.

Any seasoned investor will tell you that buying and selling properties cannot be an emotional experience. You have to do your due diligence in what the market is offering and then make your decision based on rents, facts and numbers only. Other investors have “bird dogs” that will follow the market and when they find properties for them, they will buy them sight unseen because they fit the formula as a sound investment and will enhance the overall portfolio. Using the 10% guideline is an important step in buying your real estate and can save you time and money.

Rhonda Hoffman

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