THE RULE OF 5

Acquisition Cost vs. Income Potential

When evaluating the merits of any non-owner occupied real estate purchase it is always sensible to consider the relationship between purchase price and potential revenue.

Relatively small single family homes that can generate a rent close to the principal and interest payment even when properly leveraged to accelerate ROI dominate under this analysis.

Maintenance Requirements

When considering any major real estate purchase, experienced property owners include in their analysis the long term cost of ownership.

When it comes to owning real estate, new construction, under builder warranty, in an HOA controlled sub-division will always cost less to maintain than a resale property.

Exit Strategy

Forethought going into a transaction regarding the most profitable and likely exit strategy is a key step many novice real estate owners fail to consider before investing their hard earned dollars.

It is our belief that when it comes time to market your property for resale and realize your profits it is to your advantage to have the largest positive pool of prospective buyers. Relatively small single family homes always have more potential buyers than any other class of real estate.

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© 2008 Calloway Investments, Inc. All rights reserved. The information provided herein is provided for informational purposes only, and is not intended to be a substitute for your own due diligence and independent research. You agree that any purchase decisions you make will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, financial condition, and liquidity needs, and any other information available to you. You are reminded and agree that all real estate used for income or other investment purposes face the risks attendant to such an application, including that real estate values may go down, rents may decrease, and that vacancy rates may rise. Real estate is by its nature illiquid and a ready market may not exist for any particular property once purchased. Past performance is not a guarantee of future performance or results. By reviewing the information contained herein, you are agreeing to the terms and conditions contained in that certain page labeled "Terms and Conditions" which has been made available to you.