In the spirit of Father’s Day on Chicago’s North Shore and real estate near and far; advice that may come from Dad regarding life, money and real estate investing..
Do the math. Then do it again.. home purchase prices, various appreciate rates and rental income scenarios, interest rates, opportunity costs, vacancy buffers, landscaping and maintenance, insurance — every single line item goes into the hopper.
Have an exit strategy — and your backup A,B,C plans — before you buy. If you’re buying a North Shore home or any home to live in, Dads might say not to even start your house hunt without knowing how long you expect to be there and what your next move will be. In this way, you can be sure to buy a home that will work at least as long as your plan A is in effect. Of course, even the best-laid plans can be foiled by forces beyond your control, so Dads are big on putting plans B, C and on down the alphabet in place upfront, and not making the buy until you have accounted for these various outcomes.
Buy it right. Whether you’re hoping to buy a personal residence that appreciates over time or you’re investing in the market, Dads may say to buy at a price you can afford.
You won’t win them all. Striving for a perfect investment record of profits on top of profits is great, but it belies the reality of life that little is perfect. The more mature approach, a Dad’s approach, is to be grateful for the lifestyle of a homeowner and the returns of a real estate investor, understanding that the occasional investment may not go as planned. Having a seasoned real estate professional as a guide will help. More info HERE
Happy Fathers Day!