Is There a Perfect Time to Invest in Real Estate?

Everybody is always looking for, and waiting for, the perfect time to invest. In a lot of cases, that waiting actually costs you money.

The problem with waiting

Trying to time the market perfectly means guessing the exact moment prices bottom out or rates hit their low. Nobody can do that reliably. While you wait, you might:

• Miss out on good properties
• Miss out on rental income you could have been earning
• Watch prices rise past what you could have paid

As Joe Gonzalez says, if you ever find a crystal ball that shows you the perfect market, let him know. He’d love to use it too.

Focus on cash flow instead

Instead of trying to predict the market, ask one simple question: can you get the cash flow you need to make the investment work?

Cash flow is the money left over each month after collecting rent and paying the mortgage, taxes, insurance, utilities and maintenance. When a property has healthy cash flow:

• It pays for itself while you own it
• You’re less exposed to short-term price swings
• You can hold through any market without being forced to sell

Cash flow works in any market.

How to check cash flow before you buy

1. Estimate realistic rent for each unit.
2. Subtract all expenses, including a vacancy allowance and repair budget.
3. Subtract your mortgage payment.
4. Make sure what’s left is positive and leaves a cushion.

Ready to run the numbers?

The Right Choice team can help you evaluate investment properties across Niagara based on real cash flow.

Call 289-276-1716 or contact us.