Investment properties are great assets, which one can use to acquire greater fortune in time. These properties increase their net worth as time passes, which can also be an advantage to landlords with its rental profits. Novi MI, for one, offers a lot for those who are planning to move from the City of Detroit. This is a haven for property investors as well as home buyers. Investmentproperty Novi MI has much potential to turn into a great asset once developed into a fully fledged business venture with great returns.
But how can you find the perfect investment properties Novi MI? Here below are some helpful tips to guide you on your investment:
1. Analyze the value of a property before jumping in to buy it. This will help you understand if this property’s potential value.
2. Know the annual net operating income for the property. Calculate your expected rental income from the purchase in a 12 month period, and take away any costs which can be associated with the maintenance of the home. Additional costs can include management, property taxes, repairs and insurance. If you’re not much into the math, having an investment expert by your side will surely help.
3. Understand capitalization rate. You can do this by dividing the annual net operating income with the purchase or market price. The method can be Cap Rate is equals to the Annual Net Operating Income, divided by the price. A wise investor chooses those which is close to an 8% mark.
4. Interested to find cash on cash returns? You can also do this by using the annual NOI and deducting the debt and mortgage payments.
Sounds difficult? Having a real estate agent will be able to help you to find the perfect investment property Novi MI. See Conquest Real Estate’s site (http://www.trulia.com/profile/Conquestrealestate) for more details.
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