General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 6 years ago,
NEWBIE FIRST INVESTMENT - Help!
Any help would be greatly appreciated! I'm a new investor about to sign an agreement for my FIRST property. Actually, 2 properties. The numbers work for rental properties - $250 cashflow per property, 45% ROI, etc. I've ran my numbers multiple times and feel comfortable with them. Both properties are mid 30k and are built around 1955. Both properties are currently rented on a year lease.
The thing holding me back - I would be paying a little over the appraised value. Is this a serious issue? I hear all of the time to purchase below value so that there is equity, obviously, but the numbers are so good here and the seller will take no less. He also wants me to pay closing costs.
Is the age of the house an issue? I will have an inspector come out soon, as well. The houses aren't perfect - this is a lower-middle-class clean neighborhood so I'm aware that this isn't the best property ever. However, the numbers work.
This is my first and I am TERRIFIED. Any pointers would be great.