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A favorite reason hear for wishing to purchase real estate now is your desire for additional money.
Unfortunately most real estate investments, particularly residential property purchases for investment, do not generate positive cash flow for quite a while.
This can cause you a great deal of stress and may even result in financial bankruptcy if you are not able to keep track of your expenses.
So investors who acquire properties with no proper contracts in place may find themselves locked into rental rates for years to come.
A good rule of thumb is around ten to fifteen per cent of the contract value should be applied to almost any possible rental income every year.
For investors who wish to use this rule to residential real estate deals, the percent to be applied would depend on the period of the property agreement.Aside from percentage established lease income, a fantastic way to make certain you enjoy great returns on investment in your property deals for beginners would be to purchase properties that are not that pricey.
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