All Forum Posts by: David DiCenso

Mo,

A follow up to your question from Monday 2/20/19. You asked if there are many other metrics and there are. For convenience, I found a summary doc from Than Merrill today about "Performing A Rental Property Analysis: 8 Factors to Consider." I'm not sure if I am able to embed an URL in this forum. 

https://www.fortunebuilders.com/rental-property-ca...

The obvious few are quality schools - rated in comparison to the state and country-wide performance stats, house location to these important amenities, parks, ideal tenants, Property type, vacancy rates, hospital and big box grocery in close proximity.

Hello Mo,

I haven't replied much in this forum but today I decided was the beginning to do so. I know you are searching for a real estate investment transaction and using the MLS and/or a real estate agent. I'm not sure if I missed anyone's reply as to an exit strategy and your intended use for this investment. Did I miss that this is a buy and hold i.e. becoming a landlord? Is it a buy, fix, flip? Is it a Brrrr? RE investing has many ways to ==> profit!

As all RE investors know on "SFR's", is that you make your profit on the way in not on the way out. Let's say you plan to buy and hold and want to become a landlord...A simple metric is to know the local rental market where this property is located (can also be found on CraigsList). For example, if this is a 3/2 two story detached and the real estate professional tells you that rents in this area for these bread and butter 3/2's (under 1,500 sq. ft.) are $1,400 on avg. per month. A simple REI rule is the 1% or 2% monthly rental vs. the asking price....does this property pass either one of these two metrics, if not, assuming everything else is fine with the home and repairs going in aren't necessary or little, then the price point (maybe) where you walk away shouldn't be higher than $140K ($1400/$140,000 = 1%). However, nothing is preventing you, through your agent, to place a purchase offer for $120K or $130K, especially as the DOM continues to grow.

If you plan to buy and hold and this one particular home is in the targeted RE market that you want to be in or have knowledge of, then move a little closer to getting "and learning" about some basic metrics dependent upon your investment intent. Basic formulas or using the BP calculator(s) I'm sure will be beneficial to you. Are there any Real Estate Investment groups in your area? 

I was questioning if I should have replied to your question today in the forum. I'm glad I forced myself to do so. 

Good Luck.

Dave

I continue to listen to the BP Podcasts whenever time permits. Enjoy reading the many "how-to" conversations in the Forum. Thank you BP!

Hello Everyone. I mention BP to every investor or wannabe RE Investor whenever I get the chance. It's fun turning others onto this website and away from the little-value-for-your dollar gurus and so-called coaches all wanting to drain your funds. I am looking to meet and connect with as many of the BP members as possible. 

Best to all of you in your REI business.

Dave DiCenso