All Forum Posts by: Mark Gauger

When running the numbers, run them as if both sides were rented. It will give you a more accurate picture of how the property performs as an investment. 

Start finding your own numbers. It matters more what the market rent is than what the current owner is currently charging. 

If you've identified the market you want to invest in, start watching Craigslist. Keep a spreadsheet of property type, beds, baths, square feet, condition, and price. Do that for a month or two, and you should have a good range for market rents. 

If the current owner has rent above or below market, it will impact vacancy, so you can't trust whatever they state anyways. 

@Shannon H. Are the numbers above for a multi-family property where you will be owner occupying? And is the monthly rental only for what the other units will be paying? If you are analyzing a house hack as an investment, it is helpful to look at it as if you would be paying rent too. So for the above example, if that is a duplex and each side would rent out for $1100 a month, then use $2200 for your monthly rent. Then you can get an accurate picture of the investment performance in the future once you move out.

If your purchase price, repair cost, ARV, and monthly rent numbers are correct, then this is just a terrible deal. Paying retail prices off the MLS is not going to be a deal that cash flows in most markets, even on a 30 year mortgage. In order to make this cash flow, you would need to drop the purchase price a lot. So much so that if you were actually able to buy at that price, you would probably be better off flipping instead of holding as rent of only $1100 seems very low for a $200k house.