Advice for new Investors

[Alexander Roeschmann]

Let's say you just found a promising Property and are ready to make an Investment. First you have to run the numbers, because a lot of promising deals might be a total disaster once you sign the contract. Here I will give you a short overview on where to get your numbers from and how to use them.

1.) Look at MLS Listing Systems (Agent only), if you have an Agent let him send you all the information to you. If not there is a lot provided on Zillow, Estately, Realtor etc.

2.) When looking at maintenance there is an easy way. First determine how old the property is, what things need to be done, what has to be done. For example a house usually requires a new roof every 20-25 years (rougly about $12.000). Calculate those in. When you decided you are pretty sure you want to buy it, get an Inspector (about $200) to check it all out and confirm your data. Update it and if you're comfortable you're good to go!

3.) I usually determine the rent via Rentometer.com For me it's an easy way to see what you can use!

4.) Taxes are usually in the advertisement and insurance can be guesstimated at about 0.31% of the property value.

5.) always be conservative: if you're unsure, use conservative numbers (like 12% property management, 10% maintenance, 8% vacancy etc.)

Important stats are: the NOI, CapRate, Cash on Chash Return, Cash on Cash ROI, total monthly Income and total Monthly expenses including mortgage payments and general expenses including CapEx. If you don't know what the above are google them or use youtube to find out. Good luck!