Analyzing Question - Newbie

[Victoria Leon]

Alright so I need some clarification! Anything helps guys, really. So me and my fiancé have this idea of doing an FHA Loan for our first property while we do some small renovations, a home obviously good enough for the FHA but still capable of being upgraded here and there. We then after the 12 months, would like to find ourselves another home to live in, while renting out the FHA Home.

My question is,

What kind of numbers / math do you do when evaluating single family homes? What are some strategies especially considering the goal is to get some tenants in there after the 12 months.

Again, anything helps. We are little by little paying off debt and saving everything we can to make this happen while actively looking at local properties.

[Derek Harris]

Originally posted by @Victoria Leon:

Alright so I need some clarification! Anything helps guys, really. So me and my fiancé have this idea of doing an FHA Loan for our first property while we do some small renovations, a home obviously good enough for the FHA but still capable of being upgraded here and there. We then after the 12 months, would like to find ourselves another home to live in, while renting out the FHA Home.

My question is,

What kind of numbers / math do you do when evaluating single family homes? What are some strategies especially considering the goal is to get some tenants in there after the 12 months.

Again, anything helps. We are little by little paying off debt and saving everything we can to make this happen while actively looking at local properties.

The biggest issue many investors run into is not calculating all the numbers correctly. I highly recommend using the BP calculator. Always take into account maintenance, CAPEX, vacancies, make-ready costs and prop mgmt. Also, keep in mind that FHA loans require MIP. Before buying your first investment property, you should know what your investment goal is. If it's cash flow, I would calculate the numbers and see if this property meets your minimum criteria. If you're in a slowly appreciating market, the cash flow should be substantially higher.