Unlike purchasing a property as a home, where the buyers are emotionally involved, the purchase of an investment property mostly is (should be) a business decision. Below are some of the decision points:
- Initial cash needed for down payment, closing costs, repairs, etc
- Cash flows (before and after tax)
- Tax impact (liability or savings)
- Return on investment
Financing, expenses, holding period, etc are all important factors that would impact the decision points listed above.
As I have mentioned in other posts, a good investment is like a 3 legged stool, each leg impact the stability of the stool:
Feel free to contact me with any questions, or comments.