Knowing a deal...how to assess
My real estate agent provides listings (multi family homes). Our strategy is looking for multi-family homes to purchase and hold as option 1. Option 2 - flip.
How should I go about assessing homes in this list?
What are indicators or measuring tools?
What are benchmarks?
Steps to follow?
Pre approval is in progress, and looks favorable.
Most Popular Reply
You have to run numbers and decide after that. If it's turn key and rented you would analyze current rents vs expenses. If it's a fixer upper you would account for the rehab and purchase price then compare against the ARV. It's important to know what market rents are for what you are analyzing, many properties are super under rented and you have to get them to market rates. Is your agent familiar with the investment space? They should be bale to guide you more based on what you are looking for in the area.