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Updated almost 4 years ago,
How to compare properties when inventory is low.
Hello everyone! I'm Jessica and I'm new to Bigger Pockets and investing.
My husband and I have begun the process of learning how to choose an investment property and are currently analyzing a property. We have an opportunity to buy a home off-market in the Prince George's County MD area. It meets many of the typical criteria (good school district, close to good job market industries, in good condition, and we are getting a very good deal on it-buying from family).
Our challenge is that
A. We have very few properties locally to compare it with since inventory is so low right now and
B. We don't know how it will fare long-term since prices are inflated right now--ie. does it have longevity as a rental property down the road. I have no idea if we could continue to rent for the high amount that we could now, later. (I have run some market research at the numbers that make sense for the property to provide cash flow and have gotten many responses from potential tenants)
I have contacted some property managers to gain more insight in our market but was wondering about tips on how to further analyze this property. What else should we try before buying?
Thanks so much for any insight you can give us!