Newbie Trying to get Grasp on RE Investing!!!

[Acaiah Howard]

Hello forum,

I am a newbie when it comes to real estate investing. At the moment I am looking for leads and acquiring COMPS from my RE agent. I guess my question is; when you find a property how do you run the numbers to determine if it's a good deal or not. How do you come up with the ARV?

[Michael Kistner]

@Acaiah Howard

 You want to find out what all the expenses are going to be. 

Principal, Interest, Taxes, Insurance (PITI),

All the operating expenses;

Property management,

Maintenance,

Vacancies,

And then figure out what it will rent for. 

For ARV -

  When you’re looking at a property that needs work itemize the things you would fix up, kitchen, bathrooms, fixtures around the house and compare it to properties that have sold that have those updates already. 

If you're just starting out you may want to lean on an agent in that area that has experience dealing with ARV's.

  Hope this helps and welcome to BP!

-Mike