Evaluate Returns

There are two main ways to evaluate property investments: short-term flipping and long-term holding (buy, fix, rent).

For long-term holding, focus on four key things: equity position, cash flow, repair costs, and market timing.

Equity means buying below market value; check comps through MLS or agents to avoid overpaying.

Cash flow is about rent vs expenses; rents usually rise faster over time, making long holds profitable if rents can increase.

Repair costs matter: a cheaper property needing big repairs can cost more overall than a pricier, ready-to-rent place.

Market timing is crucial; low markets like 2009 were great buys, while high markets mean caution. Prices generally tend to rise unless interest rates spike.