You’re absolutely right, I don’t know the complete financial profile so I am estimating a lot. On top of that I have 0 experience. I feel like I might be jumping in too fast, or I started in the wrong track.
Originally posted by
@James C.:
Meldeine,
You are doing your analysis incorrectly. Maybe a different way to say this is that you aren't looking at things in a logical, business oriented way.
Remember, the value of any investment is the return you make on that investment. Notice there is nothing in that statement about the type of investment.
What you are lacking is information. When you make statements like "I don't know" coupled with "I am worried", that is a dead giveaway that you need to go get information. In essence, you are whining about what you aren't doing.
Think about it this way, if you knew EXACTLY the entire financial profile of the investment (acquisition, rehab, running, exit), then you would just throw your numbers into your business model and be done.
You can never know exactly (if you want to, it's analysis paralysis), but with good information (research) you can get close enough that you get comfortable enough to purchase the investment.
So your job, if you want to invest in multi family, is to stop whining, and go get the information for how much it's going to cost to rehab the unit. Then put that into your model and see if it meets your return criteria. That's the work of being a profitable investor.
Ultimately, there will be some risk you will have to take, but that's investing.
Hope that helps.
Good luck,
Jim
