It is important, if you want to be successful, to obtain as much “real” data and information as possible. Often this is hard to obtain because the person providing the info has something to gain if you buy a rental property from them and ethics are not the bedrock of their business practice.
As an example, I received a call this past week from someone who was told by a developer that one bedroom units in the Scottsdale area rent for $900.00 to $1200.00 per month. My gut told me this was not probable… maybe two or three bedroom units but not one. I check the ARMLS stats since February 1st 2010 and found most of the 1 bedroom condos in mid to north Scottsdale rented in the $700.00 range and none over $900.00/month. I am not saying the real estate developer was lying, heaven knows that has never been done, yet the facts do not support the claim.
The moral of this tale is to be careful and do your own due diligence. If someone promises you something, get it in writing. Learn how to perform market analysis or hire someone whose motivation is your success, not his or her pocketbook. Also, success is in the details. Forgetting to include expenses such as vacancy periods, marketing costs, maintenance, HOA fees, taxes, management costs and such can ruin a good day.
As they used to say on a TV cop show… be careful out there.
Credits: http://www.favstocks.com/
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