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What are the best techniques to use to lose money with your rental properties? See my Ezinearticles.com piece entitled Six Guaranteed Ways For Landlords To Lose Money And Have Terminator-Type Tenants.
The top two ways to lose money are:
1. Buy a rental property in the worst possible area. The type of tenant you attract will be determined by the location and appearance of your investment property, and it will affect the amount of rent you are able to charge.
2. Buy the best fixtures and appliances for your property. Never by from recycled construction material shops or yard sales. Money is no objective. Trust that your tenants will take good care of you house.
Another article I recommend reading is Calendar Considerations When Buying A Home by Raynor James. Most markets are cyclical in nature. In practical terms, this means there are periods where the market in question is very busy and periods where it is very slow. These cycles also applies to the real estate market.
As Rayor James explains, buying a home in a seller’s market is tough. In contrast, buying during a slow market is an incredible opportunity. You have a chance to get in at or near the bottom floor of prices. If you can keep focused on the future, you can really make a killing. Yes, you might see the value of the home drop a bit more, but the key is to focus on 2010 and beyond. That may seem a long way away, but the real estate market will bounce back and have returned to typical highs by then. This is where millionaires will be made.
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