BUYING

Investment Property

Buying investment property is a big deal. It is a huge asset for most individuals, and it requires work. Many individuals actually view owning a rental property as being more similar to a small business than an investment, because it involves customers (tenants) and vendors.

Buying an Investment Property

We work with real estate investors to purchase real estate to generate cash flow, equity and diversify investment portfolios. Whether you’re a seasoned real estate investor or want to buy your first investment property you need local knowledge and extensive experience to secure the right properties that will cash flow. We employ strategies to buy right based on location and growth and to  find distressed and early stage foreclosure properties. We look at potential cash flow and expenses of the property including taxes and maintenance as well as compare rents of similar units in the area and review tenant occupancy to understand if the property is available with ongoing leases in place. We understand that owning rental property is part of an investor’s business plan and treat it as such.

If you’re ready to invest or re-invest here are some things to consider:

Payment Strategy: Mortgage, Cash, Retirement fund, 1031 Exchange, Inheritance, Stock Options
Different purchase methods have different requirements.  For example, a 1031 exchange requires specific time frames be met for identification and exchange of property. When using retirement funds often the money used for payment needs to be sent directly from the fund to escrow to avoid potential tax penalties.  If a mortgage will be applied for, it must be a mortgage that allows the owner to lease the property after purchase.  These are just a few examples of many requirements when purchasing investment property.  It’s critical that you work with agents that understand the ins and outs of investment property as maximizing your investment dollars often depends on it.

Considering The Extra Expenses
Every property has items that the owner is ultimately responsible for. Below are some to think about when purchasing an investment property:

  • Property Taxes
  • Maintenance
  • Repairs
  • Service Calls
  • Wear and Tear
  • Landscaping
  • Property Management
  • Insurance
  • Damage to the property
  • Utilities
  • Appliances
  • Tenant Non-Payment
  • Potential legal fees
  • Depreciation
  • Hold time
  • Cost basis
  • Tax Preparation

Calculating Your Return On Investment
Once total expenditure is derived the true test is return on investment.  Use the below calculation to estimate your ROI. First, take your total equity, and divide it by your annual return.  You can calculate your annual return by doing the following:

Gross Income – Expenses (including mortgage payment) = Cash Flow
Cash Flow – Income Taxes + Principal Payment = Return

To calculate your return on investment = current equity / total return.

It is important to calculate this return annually, especially relative to other investments so you can compare your rental property’s performance.  This is an essential calculation before buying any type of investment property.

Buying Investment Property

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Greg Davis

Greg Davis

Designated Broker/Owner, CRS, GRI, 5 Star REO Certified, RES.NET Certified, Equator Platinum REO Certified

(208) 250-0132

todaysbroker@gmail.com

With over 18 years of experience, Greg Davis is the Treasure Valley’s “Go to” agent and a consistent leader with a reputation for tenaciously protecting his clients’ interest.  Savvy negotiations and cutting-edge marketing strategies join uncompromising integrity as the hallmarks of Greg’s service.   Greg is exceptionally well-respected in Boise, not only for his unparalleled professional track record and being an honest, hard-working family man who does absolutely everything in his power to ensure his client’s success.

In addition to real estate, Greg loves people!  His passion for building relationships and delivering stellar service to his clients are his top two priorities.  His motto, “Honesty Before Advantage” makes every transaction a “Win Win” for all parties involved.

Beyond his love for real estate, Greg is also a dedicated family man.  He loves to travel with his family and has been to Disney World more times than a grown man should be willing to admit.  Greg has also served on short-term mission trips to Indonesia, Haiti and Ecuador with Mission Aviation Fellowship.

Thanks to his exceptionally loyal clientele, personal referrals and repeat business are the foundation of Greg’s career.  To ensure efficient, complete service for you, Greg’s associates have been carefully selected from the very finest contractors in the business to form a close-knit “family” offering seamless assistance for every aspect of your home purchase or sale.

Please call Greg anytime without obligation.  He is ready to work for you today!

Experience

  • 1994 -2000 worked in sales at a startup software company. In 2000, the company sold for millions of dollars.
  • 2001 became an Idaho Realtor while waiting out a 2 year non-compete clause in the Microsoft Arena.
  • 2003 became an Idaho licensed real estate broker
  • 2004 created two real estate companies
  • 2006 Sold one real estate company for high returns (Payette Mountains Realty)
  • 2008-2013 IMLS (Intermountain Multiple Listing Service) Board of Directors
  • 2011-2012 IMLS President of Board of Directors
  • 2015 – Sold other real estate company (Genesis Real Estate Group, LLC)
  • Present – Designated Broker / Owner of Rise Realty, LLC.

Expertise

  • Residential property sales including fine homes, condominiums, income properties and custom homes
  • Exceptional attention to skilled negotiations, knowledgeable analysis of property values and market trends
  • Expertise and renowned credibility in resolving difficult transactions

Designations

  • Licensed Real Estate Broker, State of Idaho
  • CRS – Council of Residential Specialist
  • GRI – Graduate, Realtor Institute
  • 5 Star REO Certificated
  • NET Certified
  • Equator Platinum REO Certified
Rise Realty, LLC