Purchase - $53,000.00

Closing cost buy - $3,214.45

Hard money payments – $1,469.76

Rehab – $14,414.95

Closing cost sell - $5,306.25

Total cost – $77,405.41

Sale price – $95,000

Profit – $17,594.59

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If this is your first foray with this, you will want to weigh your options as far as how you will purchase your initial property. Not a lot of people have the entire amount up front to purchase the property with cash. So, instead of saving, some people will go ahead and get a loan in order to get started. Some experts say that it is better to wait and save your money first. This way, the monthly income that comes in will go to you instead of the lender. You will also be able to build wealth quicker by paying the entire amount in cash. However, it is still possible that a bank will loan you the money you need in order to get the property. If you go this route, make sure that you have some backup funds in the event you get in a financial rut. At least you will still be able to pay on the loan. Of course, the better situation is to have all of the money up front and pay cash outright for it. After that, you would only be responsible for repairs, maintenance, taxes and other miscellaneous items.

When considering a property for investment purposes, you will need to know how much it will cost you in taxes. Every year, you will have to do this or you could find yourself with a lien on your home. In addition to that, you will need to determine a monthly rent amount for whoever you allow to stay there. Some investors will go through a rental or management company to get their rent. This can release some of the duties from your schedule. On the other hand, you will have to shell out more money to the company for outsourcing. Only when you are financially able, should you do this. As a beginner investor, you should be responsible for collecting the rent and other fees as deemed appropriate.

 This extension will continue to allow borrowers to use FHA-insured financing for the purchase of properties that have been owned by the seller for less than 90-days, meeting the same conditions as previously permitted by FHA.

• In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the Waiver will only apply if the lender meets specific conditions and documents the justification for the increase in value. This typically means a second appraisal and home inspection.

This is great because it still encouranges investors to buy homes and fix them up creating more inventory that is fixed up and can be closed on without doing a short sale.

Even though the real estate market rises and falls, there are still many benefits to being in real estate. You can expect that if something happens that causes the real estate to lower, it will eventually come back up. There is always a need for housing and people are always moving into different locations. No matter what type of real estate you are investing in, you can expect that someone will have the need to live on the property. Because real estate is part of the basic needs of individuals, it can be expected that someone will always be looking, and others will always be selling.

One of the advantages of real estate that gives it more stability is that no matter what the economy, there will always be real estate selling. It can be expected that if the market is bad, individuals will be working towards selling their homes to move somewhere more substantial. If the economy is good, then individuals will be looking into buying homes that can offer more. This helps to keep real estate as one of the stable markets among businesses.

If you aren’t certain about investing in real estate, you don’t need to look any further than the economy and how the fluctuation is always to the advantage of those owning property. No matter what the circumstances, individuals are always looking for a place to live. If you want to make sure that you are part of the trends in the market place, then investing in real estate is a certain way to keep stable income.