Buying first rental unit

[Holly Schuler]

I am looking to purchase my first investment property and have a few contenders. I am looking at 2/2 condos with an approximate rental value of 750-800/month. One of the units has an HOA of $140/month and the other has no HOA. I have run the numbers and they seem to both be cash flow positive but I am unsure of how to evaluate the market value so I can make an appropriate offer. I want to have immediate equity. Other properties in the same complex have sold for about $10K lower than the current asking price. Just don't want to overpay. Also I am paying cash so should that affect my offer in any way? Any advice would be greatly appreciated. Thank you BP community!

[Jonna Weber]

@Holly Schuler - Congrats on your potential first purchase! Condos can be tricky - so please be sure to read the fine print of the HOA carefully, and any assessments that thy have a right to assess. Related to past sales, please note how far back they sold, and if they relate to your current market. Also, compare the condition of the properties. A cash offer is typically looked upon vary favorably, and many times a seller will agree to better price terms for a quick close cash offer. Have fun with the process!