Real Estate Investment Education
Learn the fundamentals of real estate investing and get answers to common questions
Real Estate Investment Tips
Did You Know: Cash-on-Cash Return
Cash-on-cash return measures your annual pre-tax cash flow as a percentage of your total cash invested. A good target is 8-12% for rental properties.
Frequently Asked Questions
How much money do I need to start investing?
You can start with as little as 3-5% down with an FHA loan for a house hack (living in one unit of a duplex). For traditional investment properties, expect 20-25% down plus closing costs and reserves.
What's the difference between cash flow and appreciation?
Cash flow is the monthly profit after all expenses. Appreciation is the property's value increase over time. Focus on cash flow first - appreciation is a bonus, not a guarantee.
Should I manage properties myself or hire a company?
Self-management saves money but requires time and local presence. Property management companies charge 8-12% but handle everything. Consider your time, location, and experience level.
What are the biggest mistakes new investors make?
1) Not analyzing deals properly 2) Underestimating expenses 3) Buying in the wrong location 4) Not keeping adequate reserves 5) Overleveraging too quickly.
How do I find good deals?
Build relationships with real estate agents, wholesalers, and other investors. Use the MLS, drive neighborhoods, look for distressed properties, and consider off-market opportunities like auctions.