Hey a newbie needs help lol

[Account Closed]

Hey BP community I'm new to REI how i have 2 choices to pick to start investing

1.) A 3 unit with all 3 units occupied.

                            -OR-

2.) A 4 unit with no tenants but need about $10,000.00+ worth of work done to it.

[Jonathan Plant]

Here are a few questions that can help you decide:

1. Asking Price compared to Market Value.

2. Recent Comparable multi units sold in that market. Look at the county assessor’s value on property and compare it with others that sold.Did the ones that sell come close to the assessor’s value?

3. What is currently for sale?

4. On the 3 unit, what is the current rents? What is the surrounding market rents? Is it close? If possible, can you raise rents 10 to 15% a year while improving quality of life for tenants to bring it up to market?

5. On the 4 unit, what is the current market rents for comparable size unit? How soon can you get a tenant in after rehab?

6. Will you be using a Property Management Company?

7. What are the total required expenses for both properties?Take the rents and minus the required expenses (trash, water, sewer, community electric, taxes, insurance… (Don’t include your mortgage, if you will have one).

8. What is your short and long term investment goals?

9. What specific timeframe are you expecting to hold this for?

10. Do you have at least two exit strategies if something crazy happens to get out of the property or turn it around?

11. Do you have six months of expenses put aside?

These are a few things you can ask yourself to ensure you have a plan.It is better to have a plan when you don’t need it than not have a plan when you do need it.

Jon