Target Property
/Creating Wealth by Robert G Allen/
- A three-bedroom detached single-family house or an attached condominium or townhouse that is located in a stable neighbourhood within a 50-mile radius of your own home;
- priced at less than the median price in your city and worth at least 10% more than your cost;
- can be bought with less than 10% down and
- terms that allow the buyer to rent out the home with no negative cash flow.
Buy homes only in the bottom end of the price pyramid:
How to Find the Right House
- Area with large numbers of middle-class houses in the lowest-priced category.
- Property: three-bedroom house
- Price range: you should buy houses prices much less than the median-priced house in your area.
- Rent fee: Check the rent fee for two and three-bedroom apartment in the area. Your rent fee should be equal your mortgage fee with 10% down payment or up to 10% more.
