Creating Income Opportunities: Purchasing income or investment real estate as an investment can be both profitable and perilous, especially in San Francisco and other Bay Area communities, where there are high rents and strict rent control ordinances. Rental incomes are a very good way for those looking for a stable investment that will appreciate over time and that gradually generates higher returns by increasing rents and lowering expenses. Most real estate investors make their profit when they purchase a building, not when you go to sell the building. So if you overpay for a property then you severely impact your ability to recover your initial investment. Investors need to examine the numbers with a cash flow analyzer to determine the profit the building brings in and then decide whether the price you are paying is inline with the income generated from the building, now and in the future. |