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Updated about 6 years ago on . Most recent reply

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Cole DeLucas
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What makes a property cash flow? How to analyze a deal

Cole DeLucas
Posted

I am brand new to real estate investing and I currently have an agent as well as a lender in my circle. I am very serious about pursuing rental properties, BUT I live in very hot and expensive market (Washington D.C.) and feel that I will need to invest in rental properties outside of my market. It makes me nervous that I would not be able to see a property before purchasing, so my question is, what aspects of a deal should be attractive for my first deal? I am 23 years old and looking to house hack/use the BRRRR strategy for my first deal and would like to find a house under $300,000, but do not know what to factor into my decision. How can I tell just from analyzing a property if it is going to cash flow? 1% rule? Comps? I have heard Brandon talk on the Podcast about how he can tell just from analyzing a property that it will produce positive cash flow. What plays into this analysis? Would appreciate any guidance!

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