Know the area's GRM...

Hello there,
Chun Liu here with Team WOWWHEE.com.

One of the things to add to the previous post is to know the area you are purchasing and learn the approximate GRM that other properties sell for in the area!

For example, Long Beach has different areas such as Bixby Knolls and north Long Beach and downtown Long Beach and east Long Beach and Belmont Heights and Belmonth Shores etc. Each of those areas will have investment buildings available that should be close in GRM in the final sales prices.

Knowing what the GRM is will help you make your business decision on whether or not to purchase the income property in that specific location with the expected income coming in. Plus, once you know the GRM, you will know if the general area is expecting a cash on cash return or primarily tax deduction purpose purchase or ?...

Bottom line is that the more you know, the better off you are in your investment. Like doing the homework before buying stocks, do the homework before buying investment properties!

Like usual, please consult a professional in real estate to help you sort everything out. Thanks for stopping by!