Investing in Real Estate – What is a “Good Deal?”

Ok, so I drafted up how to measure a good real estate investment deal and make it easy to understand. I submitted it to my “handler” at Zillow and Voila…it appeared.

Investing in Real Estate – What is a “Good Deal?”

Let’s look at a tried and true way to measure rental property investment returns and what we as buyers should be looking for in our purchases. Total investment returns in real estate are really comprised of two pieces: operating positive cash flows and long-term appreciation. In today’s world, even though it probably will come, we cannot count upon and should not consider long term appreciation. That leaves positive operating cash flows as our primary source of investment return. Let’s call this: “earning money the old fashioned way.”

You can find the rest herein to enjoy!

http://www.zillow.com/blog/2011-08-08/investing-in-real-estate-what-is-a-good-deal/

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About leonardbaron

Leonard P. Baron, MBA, CPA, is a Real Estate Lecturer at San Diego State University Who Taught the MBA Real Estate Investment Course. He is a Long Term Residential Investment Real Estate Owner, He is Buying Investment Properties Now, He Does Commercial Real Estate Investment Consulting – and Loves Kicking the Tires of a Good Piece of Dirt!
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