Everything, everything, everything is determined by price when we are talking about investment properties. Your smart investment decisions when looking for investment properties should be determined by your practical consideration of the home and how much you can get for your investment.
You’re looking at walls, floors, ceilings, roofs, heating and A/C units. You’re looking at the integrity of the home and if it meets the standards you have for renting it out to another family. You cannot fall in love with the home or its aesthetic features because it’s something you’ve always wanted or something you absolutely love. You cannot get emotionally attached because price is everything – nothing else can matter in a sound investment or business decision.
Everything, everything, everything is determined by price. ~Cynthia Deluca
There is a reason why Wal-Mart has been so successful and is the largest single employer in America because its business model is based on keeping prices low for its consumers. Sure there are things that other retailers offer that Wal-Mart does not, maybe they don’t carry high fashion designer clothes lines or offer you a personal shopper to help you with your purchases, but they offer low prices. You’re going to pay less for the shirt or shoes you buy in Wal-Mart than you probably will in another store that does offer you a “boutique” experience.
When you are purchasing rental properties, you need to ensure that you pay the price that allows you to get to your profit as quickly as possible. Ever been to a flea market? This is where negotiating comes in handy. You want to approach your purchases saying, “I don’t want to pay that much. I’m scared to pay that much. What if something breaks? What happens if something costs more money to fix than I thought it was going to?” It’s very important to understand you cannot fall in love with a property and overpay. You’re in the High Heel Landlord Business to make money, not fall head over heels in love and pay too much.