http://www.drlistings.com/blog Sat, 19 Nov 2011 09:42:30 +0000 http://wordpress.org/?v=2.9.1 en hourly 1 http://www.drlistings.com/blog/2009/01/purchasing-dominican-rental-property/ http://www.drlistings.com/blog/2009/01/purchasing-dominican-rental-property/#comments Sat, 10 Jan 2009 02:34:25 +0000 admin http://www.drlistings.com/blog/?p=8 Essential tips for purchasing  property for rental in the Dominican Republic

1. Repossessions, ugly homes, and distress homes are useful for buying property. Lease purchases can be extremely useful which  can help you to leverage investment money and reach a positive cash flow from renting. Buying fixer upper homes or repossessions can help to reduce investment money and improve your cash flow and appreciation.
2. One can’t count on a large cash flow from property with one tenant. In this scenario , the goal is to cover the mortgage and current expenses.
3. Research on a potential rental home should include significant financial planning for years ahead, like expenses of property management, repairing, vacancy, emergency etc.
4. The apartment and the 2-4 unit homes are the main classes of the multi-unit residential property investments.
5. With apartment investments the main profit comes from the rental cash flow. A lease to purchase option and leveraging investment money is quite useful in this case. The most significant factors in this case are the financial evaluation and property management. With a steady cash flow from a number of tenants, it is possible to hire a manager for the property management. It helps to increase the cash flow and the value of the apartment building. Underestimation may damage the investment and lead to loss.
6. Commercial properties investments include office buildings, retail shopping centres, industrial properties and the like. The market value of these properties is decided on the cash flow (net rental income). The main objective of rental in these cases is to generate enough cash to exceed the cost of mortgage, insurance, maintenance, future improvements. This is not an easy task to handle. It requires analysis of many things. But if done properly it could prove to be lucrative. Changes in the economic conditions usually have a serious impact on these types of real estate investments than on residential property investments. And as office buildings and industrial properties are more susceptible to these changes, it is wise to keep extra capital to support those investments if something does not go as expected. In this case, a money-leveraging approach (lease to purchase option) is very useful.
7. A vacation home can be used in two ways. It can be a property home or an investment property. This category includes resort properties, mountain homes, or beach homes. With vacation rentals, the main profit comes from the appreciation. Cash flow generated from renting is usually used for current expenses like property management, mortgage and insurance. These are short-term rentals and require intensive maintenance. On these properties know the tourist high season window and be prepared for it months in advance. The tourist high season for the Dominican Republic is generally between November to April.

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