How to Create a Real Estate Investment Plan

How to Create a Real Estate Investment Plan

Don't buy a property because it 'looks nice.' Buy it because it fits your investment plan. Whether you want to flip a house in Somerville or hold a rental in Fenway, you need a roadmap.

Step 1: Define Your Goal

Are you looking for monthly cash flow or long-term appreciation? In the Boston area, appreciation is usually the winner.

Step 2: Know Your Numbers

Calculate your Cash-on-Cash Return and Cap Rate.

Cap Rate Formula*: $(Net Operating Income / Purchase Price) imes 100$

Step 3: Choose Your Strategy

• Buy and Hold: Best for long-term wealth.
• House Hacking: Buy a multi-family, live in one unit, and let tenants pay your mortgage.
• BRRRR: Buy, Rehab, Rent, Refinance, Repeat.