Someone asked me the other day, “What is the most important thing thing to do when you invest in real etstate?” My answer came out pretty quickly. It is…. make sure you know your profits before you buy! You do this by running the numbers. This is not as easy as it sound because it means that you may have to run the numbers on 25, 35 ,50 or more properties before you find one that make financial sense.

Most smaller properties don’t cash flow because the investor is trying to buy it for such a little amount down and the income won’t support the loan payments. The solution to this is, put more down, get the payment on the loan to be smaller or DON”T BUY THAT PROPERTY!