What every real estate investor needs to know:

As a real estate investor, there are many things to know and remember at any given time.  Even if you own one investment property, it is still not difficult to forget certain things.  If you own more than one property, then you are juggling multiple responsibilities and have various amounts of information that you need to be aware of at any given time.  Sometimes the most important things can take a back seat to things that are even more immediate.  With the economy in its current turmoil, it is easy to put things off until things get better.  Sometimes they do get better with time; other times, we run out of time before it gets better.  There are many things that, as an investor, you need to know at any given moment.  Here are five things to consider today.

1. Is your insurance up to date?  Insurance is the necessary evil.  It is one of those things that you hope you never need, but you must have just in case.  Insurance is not cheap, so you never want to pay for more than you need.  You do want to make sure that you are adequately insured.  If your house has appreciated in value, you may want to have a talk with your insurance agent.

2. When was the last time you did your annual maintenance on your air conditioning unit?  The cost of maintenance cost less than the cost for repair.  If you maintain your air conditioning system with regularity it will run more efficiently and last longer.  Of course, change the filter once a month.  If you live in a state where you use your air conditioner year round, such as Florida, it is recommended to have it serviced and tuned up one to two times a year.  You can of course stretch this out; it just won’t run as efficiently.

3. What is the current value on your property?  In many locations, there have been wide price swings.  Your house may or may not be worth what it was a year ago.  It may not even be worth what it was six months ago.  Based on the current market value, you may want to change your plans for this house.  You may decide this is the time to sell, or you may realize that you cannot sell at this time and realize a profit.

4. What is your current mortgage balance, and how many years are left on the loan?  At least once a year, you should check the numbers and see where you stand.  Confirm what the outstanding balance is on the mortgage, and how many years are left on the loan.

5. When is the right time to sell?  When you first purchase a property, you have a game plan and a time frame to hold onto the property or resell.  Situations, like market values, may change.  As things change, you may reconsider your game plan.  You may decide to hold onto the property longer than originally planned, or you may decide to sell now and reap the profits, or cut your losses.  Consider information such as price paid, current property condition, and current market conditions.