Making an investment in real estate is a good decision. You may not achieve the get-rich-quick dream sold to you by infomericals at 3am or catchy radio advertisements. However, you can be quite successful if you follow in the tracks of investors who do thorough research, buy the right piece of property at a good value, and treat the property like it's their own.

Here is a list of properties I’ve sold to investors who purchased them to rent out and hold long term:

Location: Gainesville, Georgia; 3 Bedroom, 2 Bath
Purchase Price: $55,000
Current Rent Rate: $800/Month
Gross ROI: 17.4% Annually

Location: Gainesville, Georgia; 4 Bedroom, 3 Bath on FULL Unfinished Basement
Purchase Price: $62,500
Current Rent: $950/Month
Gross ROI: 18.2%

Location: Oakwood, Georgia; 4 Bedroom, 2 Bath on FULL Unfinished Basement
Purchase Price: $40,000
Current Rent: $800/Month
Gross ROI: 24%

Location: Gainesville, Georgia; 3 Bedroom, 2 Bath on FULL Unfinished Basement
Purchase Price: $50,000
Current Rent: $900/Month
Gross ROI: 21.6%

Location: Gainesville, Georgia; 3 Bedroom, 1 Bath
Purchase Price: $62,000
Current Rent: $900/Month
Gross ROI: 17.4%

Location: Oakwood, Georgia; 3 Bedroom, 2 Bath
Purchase Price: $48,000
Current Rent: $950/Month
Gross ROI: 23.8%

Pros

  • Steady Returns: Over the last several years, real estate prices normally have trended up. This has made sure investors have received steady returns. The exception to this is when there have been a few housing busts.
  • Less Fluctuation Than Stock Investments: The stock market can be quite volatile for investors. Real Estate Investments are not quite as risky in general. The somewhat stable nature of real estate investing makes it quite appealing.
  • Money In Rental Properties: A great way for investors to make a steady and passive profit is through renting out properties.
  • Leverage Is Key: Most investors put a 20% down payment on a house or property while paying the rest through a mortgage. Smart investors can use the leverage they create to work for them. This can lead to a much higher ROI (return on investment).
  • Easy Learning Process: There is much research that has to be done in order to pick the right property for your endeavor. However, you will find the learning process is much easier than attempting to interpret stock values and movements.

Cons

  • Price Of Real Estate: Some investments are fairly easy to make, but the promise of return is not as high. The purchase of your first home is usually one of the biggest investments you will make so adding a 2nd property may be too expensive for some.
  • Hard To Pull Money Out: Once you invest in real estate you need to be prepared for the long haul. It may take a very long time before you find the right buyer for your property. If you get into a situation where you need money fast then you will have to sell your property well below market value. In this case you will not get the ROI you would get if you could hold onto the property longer.
  • Hard Work: Many investors find that owning an investment property take a lot of work. You have to be able to handle your renters, anything that needs to be fixed, & regular maintenance. If you can afford a property manager then he or she will take care of things for you. However, that is going to be money out of your pocket.
Real Estate investment