Rules to Follow when Buying Investment Property

ISLAMORADA, Fla. - April 25, 2016 - PRLog -- Per Kim Bagnell Thaler, Top Producing Real Estate agent for Sotheby's International in Islamorada Florida,"You've seen the cable television shows and are probably aware there's a lot that's left on the editing room floor. While these sagas include dramatic plot points, the real world of property investing doesn't resolve issues in a single episode. Therefore, when buying investment property, there are rules to follow:

● Your investment return is made at the buy. In real estate, the general rule of thumb is that the money is made at the buy. Another way of putting it is: if you don't get a good deal upfront, it's more difficult to get a worthwhile return on the money you invest on the purchase and over the course of time you own the property.

● Always include a realistic contingency fund. Getting back to the drama that is reality realty, there's always something that pops up unexpectedly. It's just how these endeavors go and you should always include a contingency fund between 10 percent and 20 percent. This can be used as a stop-gap measure when, not if, problems appear.

● Understand the full implications of landlording. Even if you plan on hiring a property management company, you'll still be the owner, which means it will always be a concern. If you are planning to be the landlord, be prepared for all the responsibilities which come with it. Learn what to expect so you aren't caught off guard.

● The cheaper the home, the more "hassle factor." Another rule of thumb in buying investment real estate is the less expensive a home is, the more "hassle factor," it will deliver. Simply put, the cheaper the home, the more you're likely to have to deal with regularly.

● Do not buy just a home, buy into a neighborhood. Piggybacking off the above point, you should buy into a neighborhood, not just a home. If you find a great home in a mediocre or stagnating neighborhood, that's what you'll get if you buy it.

Another rule to follow for investment property is: always be fully prepared to walk away. Even if you've stumbled onto a great deal, there are more to be found without the problems you're rationalizing and willing to ignore.

Kim Bagnell Thaler is a pioneer among Florida Keys realtors. Regarded as one of the most influential realtors in the middle and upper keys, she provides expert and professional real estate service.

With her vast knowledge, 20 years experience and commitment to the highest ethical standards, Kim remains a standout among other Florida Keys Real Estate  Agents.For help finding just the right Upper Keys Real Estate please see http://www.kimbagnell.com