You shouldn’t invest in real estate if you don’t know the market. You have to know about the location and what kind of residents are in the area. When you know what you’re doing, you’ll make money. If you’re not making money, then you don’t know something. The real estate is a game about KNOW.
Important is Price and the most important is Cash-on-cash.
Use the 3X rule to figure out what property you kind afford. If you can put down $100,000, then you can afford a $300,000 property. If you put down $1,000,000, then you can afford a $3,000,000 property.
Debt is not a bad thing. It’s not an expense—it’s optional. Dave Ramsey will tell you not to have any debt but everyone has debts. The fact that I have to rely on oxygen is a debt load. Debt is what gives you leverage to own a property that you didn’t even pay for. Debt is your friend.
How should you approach real estate deals?