Real Estate Investing is an overwhelming and tough business to get started in, for a newbie! If you don’t know what you are doing you can get in a lot of financial trouble quick. If you talk to enough experience investor they will tell you, the key is to buy right! What does that mean? That is the advise that I am going to give to you in this article.
Do You Have The Foundation To Build Upon?
First thing you need to know before anything else is how to analyze property, If you don’t know you have no leg to stand on. Second,how to find deals, not knowing how to find deals, is like selling vacuum cleaners without knocking doors! If you haven’t read The 9 foundations to getting started in real estate investing, you should check it out! Lets dig in and answer these how to questions.
How to Analyze Property
Property analyzise is the foundation of your investing career, master this and you will always buy right! How do you go about doing this? You ask! Well with the internet this is pretty easy once you have the tools.
Multiple Listing Service, If you are a Realtor you have access to the MLS. If not you need a Realtor on your team.
Chase.com home value estimator, Helps you come up with after repair value or ARV.
Total View Real Estate Helps you come up with an ARV
For Sale By Owner Helps you come up with an ARV
Zip Realty Helps you come up with an ARV
County Tax Accessor Site, gives owners information like there mailing address and property Taxes owed. Also a market value that may not be exact, but will help with your ARV’s.
The above online tools helps you come up with what the market will pay for subject property.
How do you come up with an arv of subject property without MLS?
Pull up all the websites above and average the numbers by knocking off the extreme high and extreme lows. Then come up with an average preferably on the conservative side .
Calculate Operating Expenses
trash pick up
Lights/water if all bills paid
property manager fee
Depending on location some of these fees may not apply. A good return is somewhere between 300 to 400 per door rented. that’s after all monthly overhead. Including yearly taxes divided into 12 months.