How to Evaluate a Property

[Zach Hubert-Allen]

Hey BP!

So I'm creating this post to get my feet wet and try and see how other investors in the SF Bay Area approach their valuations on properties in the area. I'm currently living in San Mateo but am interested in purchasing a duplex or multifamily home in the city. My plan is to live in one unit, and rent out the other while making improvements to both units. Below is the example property. 

http://www.realtor.com/realestateandhomes-detail/1...

I would live in one of the units and rent out the second bedroom in my unit, as well as rent out the second unit. 

Here are a few of my questions.

1. What would you offer for this property? How do you formulate your valuation of this property? 

2. What rent would you have to charge to achieve a positive cash flow?

3. How do you calculate the expenses of the property? 

4. The property looks nice outside of the kitchen and bathroom. Over time I would make plans to rehab both. Are you worried that because the house was built in 1947 there may be complications in the rehab? (Old wiring, outdated sewage lines, etc)

5. How would you formulate an estimation as to how much a rehab would cost?

6. Because I'm planning on living in the property, would tax benefits am I subject to?

Any information you have would be greatly appreciated. I am interested in house hacking and would love to hear more about strategies, experiences, general tips, etc. Thanks for your time!

Best,

Zach