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Updated about 3 years ago on . Most recent reply

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How do I find out if a properity will have cash flow+appreciate

Posted

Hello BP people, I've been listening to the BP podcast for a decent little bit. I'm currently 19 years old and just started a plumbing apprenticeship. Id like to buy a small apartment or multifamily home. However, I'm a bit confused and scared lol. So here are my questions. 1: how do I figure out if a property will cash flow and appreciate in value. 2: after I find a property that is a good investment, how do I go about buying it? I've listened to a lot of BP podcasts but I have a hard time finding out the "how" to do it. So who do I go to in order to buy the home/apartment? 3: what type of financing should I be getting for it. I'd like to leverage it and not use all money out of pocket. 

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Joshua Janus
  • Realtor
  • Cleveland, OH
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Joshua Janus
  • Realtor
  • Cleveland, OH
Replied

Hey @Gabriel Spaulding, I would say when your ready to start looking for properties and how to analyze them, reach out to an investment friendly realtor or an investor in your local market and find them at a meetup on Facebook or wherever you can find them. You really want someone that invests in their market themselves and understands the numbers. They should be able to determine the COC, annualized return, estimated ARV of a BRRRR, accurate rent comps and more. The valuation and market value of a multi family property differs from a single family and you want someone that understands the distinctions if you go that route. If they just represent first time single family home buyers and aren't constantly finding off market properties and reviewing deals, you'll find a better investment through someone else.

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