Updated about 11 years ago on . Most recent reply
Having trouble pulling the trigger
I keep finding properties that I think are good deals, but then I get cold feet and start pulling away from the deal. I'm 26 years old I been saving for a while now. I have a pretty decent amount of cash saved and I want to buy a multi family property in NJ. The deal I am looking at now, well actually I'm in attorney review is a 3 family building. 2bdr 1 ba, 2br 1 ba, and a 3 br 1 ba. It needs quite a lot of work but me and my father do the work since he is in construction. The problem I have is knowing if it's a good deal for sure or not, and how much I can get in rent when I re renovate the place.
Most Popular Reply
Rentometer.com actually does a decent job of giving you Avg & Median rents.
Are you confident of your ARV?
Are you confident in your rehab budget?
Get your rental rates and use the BP Rental Calculator!
https://www.biggerpockets.com/buy-and-hold-calculator
When you are looking at market rents in the area of this property, you want to make sure you understand what level of finishes you're dealing with for those properties. There could be significant differences in the rent a property can command just based upon the finishes inside it.
Once you understand your estimated market rents, have a solid ARV, are comfortable with the rehab budget, and know roughly what your financing will look like, use the BP calculator. If the property cash flows at a rate that meets your goals...you have a deal.