Struggling to figure out if it’s a +Cashflow

[Cameron Sterling]

I’m having a difficult time deciding if a property is going to +Cashflow.

I have looked at comps around the area but there simple aren’t many around. Small town with the home being built in 1890 and being worn down by time mostly. Has a basement unfinished and a bathroom linking 2 bedrooms but this is also a 1,400 sq home. What can you tell me to look for? I’m not sure if the town is growing or shrinking. I also don’t know to decipher the difference. 

[Jaron Walling]

@Cameron Sterling You sound incredibly excited but also rushed to get into REI. I encourage you to not be. As a first time buyer it's important to limit risk. Buying a historic home built in 1890 is quite the opposite. The CapEx and rehab budget for a property like that is very high and full of challenges that newer homes simply don't have. I've remodeled properties built in 1930's and it really sucked. Find a newer property!

As rental investment you NEED to know everything. What is the average rent for the number of rooms>? What is the rental demand? What are the expenses for the property? Is the market appreciating a little? Why hold a property for years when you could live-in flip instead? I would build out some spreadsheets and run the numbers on deals. You'll find the answers you're looking for.