Use the following questions to help you build your investment plan:
- What am I trying to accomplish?
- Who will be my support team?
- What should I buy?
- Where should I buy it?
- How long should I keep it?
- Who will sell it?
- Who will managed it?
- Who will do the accounting/paperwork?
- How long am I going to hold it?
- Monetary aspects:
- What’s the purchase price?
- What are the comparable prices?
- What are the closing/purchasing costs?
- What are the monthly costs?
- What are the overhead costs?
- What are the costs of selling?
Now that you have your plan’s guidelines go back and ask yourself what’s my back up plan in case one of these assumptions doesn’t work.
For example if your property manager goes out of business who will managed it for you? If your in a large metro that’s an easy answer but if you’re in a big metro there are probably multiple property management companies that can take care of your property.