I'm a bit lost and scared and need your advice!

[Mike Leising]

Hi everyone,

A new pro member here.  I am on the verge of my first deal but am not feeling all that confident.  I have listened to almost all of the podcasts and am starting to read books on real estate investing, but until that first deal is done, I don't think I am going to feel confident.  I am really close to pulling the trigger on a duplex that I have analyzed in the below report, but I am still not sure.  Its in a good area of town, near a college, and I would assume a bit of appreciation over the years.  I am hoping someone smarter than me in the room (AKA the bigger pockets forums) can tell me if this is a decent deal to get started with or not just based on the numbers.  I am all about just jumping in and I don't need to make $1k per month on this one, but I also just don't want to have a bad experience for this first one.   Thank you!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

[John Leavelle]

Howdy @Mike Leising

Have you established investment goals and criteria yet?  If not you need to.  Use those to guide you in your analysis.  If a property does not meet your criteria then move on to the next.  

Example:  You want to invest in small Multifamily (2-4 unit) properties with a purchase price of no more than $75,000 per unit.  The deal must meet the 1% Rule for Purchase price/rent ratio.  It must also Cash Flow a minimum of $100 per unit using the 50% rule for expenses.

This is very simplistic criteria.  But, if you stay conservative and follow your criteria you should keep from making bad deals.  Once you get going and purchase your first couple you can refine the criteria.  This will help keep you on track and not lost.