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Are you ready to be a real estate mogul?

What makes a good investment property?

When it comes to residential real estate investing, are you a chump or a Trump?

If you think you have an eye for spotting a bargain and really know what makes a good investment, step up to the challenge. Answer 10 quick questions to learn if you might have what it takes to invest in, and win, the residential real estate game:

  1. In the first few years, a rental property will likely:

    Break even or even lose money
    Make money
  2. If you want to minimize maintenance:

    Invest in a brand new property
    Invest in property three to seven years old
    Invest in property at least 10 years old
    Age is not relevant
  3. If you want to select a property for maximum appreciation and value, you want:

    The most expensive home on the block
    The least expensive home on the block
    A home that falls in the average price range on the block
  4. In general, higher appreciation is likely to occur in:

    A new subdivision
    An established neighborhood
    A mixed-use community
  5. If you want to keep maintenance to a minimum, select a house:

    With three or fewer bedrooms
    With more than three bedrooms
  6. A big factor in appreciation is:

    The school system
    The number of bedrooms and bathrooms
    The neighborhood crime rate
    All of the above
  7. When it comes to ongoing costs with investment property, the most important factor is:

    What you pay for it
    Cost of maintenance
    Both of the above
  8. If your aim is to make money, you should:

    Consider a rental manager
    Definitely hire a rental manager
    Always deal with the tenants directly
  9. If you're trying to buy a rental property, go for:

    The lowest mortgage rate you can get
    The lowest fixed-rate mortgage you can get
    The lowest adjustable-rate mortgage you can get
    Whatever will cost you the least to get into the property
  10. For easy resale, look for a property:

    That has a pool
    That has a larger-than-average lot
    That is typical of the neighborhood
-- Updated: June 29, 2005

'05 Real Estate Guide
30 yr fixed mtg 3.92%
15 yr fixed mtg 3.05%
5/1 jumbo ARM 3.36%
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