chicago, IL · Member since 2013 · 10 posts · 1 vote
I want to buy and hold, but I'm not sure if what he is offering is a fair price. He wants to rent for $1100 monthly or I can by out right for 40,000. Do I run comps as if I was wholesaling or do you do something completely different when I am buying and holding a property? Very confussing.
Investor · Delaware, OH · Member since 2013 · 224 posts · 64 votes
12y
Hi Lynn. I don't understand your post. Are you saying the owner is willing to sell to you for $40k, or rent to you for $1100/month? And if you bought it, you would then rent it?
chicago, IL · Member since 2013 · 10 posts · 1 vote
12y
Okay I know that I'm not making much sense but here we go. I went to see the property because I was interested in purchasing the property. He's says that I can purchase it out right for $40K. I was trying to see how would I determine if this would be a good deal. Would I do comps of the houses that sold in the area to see if he is asking to much?
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
12y
If you are looking to do this as a buy-and-hold, you need to run comps on the purchase price yes. But you also need to do an analysis of the property as a rental - which will involve getting comps on the market rents for comparable properties, plus taking a good hard look at all of your expenses and financing. If you're very confused, you might want to slow down and learn some more first. There's nothing wrong with that.