10 Important Tips to Successful South Beach Real Estate Investing

Be a Real Estate Investor - 10 Important Secrets

When it comes to investing, everybody has certain goals and

aspirations. However, we have found that there are certain guidelines

every aspiring real estate investor needs to know:

1. Compare Property Values and Rents

Financial statistics only go so far; the best measure of a property's

market value is often the sale prices of nearby properties. The same

holds true for area rents. A low price can often be justified by a

reasonable rent; renters who can afford a high rent can afford to buy

instead, so reasonably priced rent is a need.

2. Be Careful - Tax Laws May Change

Don't base your tax investment on current tax laws. The tax code is

constantly changing, and a good investment is a good investment

regardless of the tax code. The right property with the right

financing is what you should look for as an investor.

3. Specialize In Something You Know

Start in a market segment you know. Whether you focus on fixer-uppers,

foreclosures, starter homes, low-down payment properties,

condominiums, or small apartment buildings, you'll benefit from

experience by specializing in one aspect of investment real estate


4. Know The Costs Going In!

Know the financial statements inside out. What are operating expenses?

What are loan payments? Vacancy costs? Taxes? What does the cash flow

statement look like? These are key issues that must be addressed

before making a solid investment.

5. Know Where Your Tenants Are Coming From

If the last rent increase was recent, your tenants may be considering

a move. If tenants have a short-term lease, they may be living there

simply to attract unsuspecting buyers. It is also important to collect

the tenants' security deposits at closing.

6. Assess The Tax Situation

Taxes are an integral part of successful real estate investing, and

they often make the difference between a positive cash flow and a

negative one. Know the tax situation, and see how it can be

manipulated to your advantage. It may be a good idea to consult a

tax advisor.

7. Investigate Insurance Coverage

If seller's coverage is based on lower-than-current replacement value,

your insurance cost may increase when you pay a higher purchase price.

8. Confirm Utility Costs

Ask the local utilities to verify recent utility expenses, especially

if any of these costs are included in your tenant's rent.

9. Consult Your Accountant

Taxation is a key element of successful real estate investing, so be

sure to find an accountant who is well-versed with the constantly

evolving tax code.

10. Inspect!

Make sure that you always perform a thorough inspection of the

property before buying it. Never, ever buy any property without at

least examining the site. In some cases, hiring professional

inspectors to examine the structural mechanical system may be a sound