An investment property, as you might guess, is all about the numbers. Unlike when you are shopping for your personal residence, there is nothing emotional about an investment property. You don’t care about the cute red door or the distance to the park like maybe the owner tries to sell you on. So how do you figure if a deal is right for you?
This general concept should be used when evaluating an income property as you determine if this house is worth an investment property loan in Colorado.
Common mistakes made in deal evaluation can be caught if you think about these categories. While purchase and sale prices seem fine, some investors forget about the cost of money (whether by a bank or private), paying their real estate agent or closing costs, and lastly but importantly, how much they will be left with! A list price is a starting point, but don’t let that stop you. Think of a deal this way, so that you set your buy price.