I found a foreclosed home in the neighborhood across the street from my home. On the surface it looks like a good one to buy for a rental. I am in the process of reading the information here on how to calculate if its a good deal or not. I was wondering if anyone had some advice or additional info on evaluating properties. Thanks for your help!
You haven’t given us any “numbers” to analyze.
What kind of home are you looking to buy? Type of construction? Number of Bedrooms? Number of Bathrooms? Garage capacity? What is desirable about this particular neighborhood? Amenities? Etc.
How much will it cost to acquire the home (purchase price plus rent-ready rehab)?
What is the monthly rental for similar homes in the same neighborhood?
@John T. I wasn't nesesarily looking for someone to analyze the numbers for me, more along the lines of what data I should be collecting to do it on my own.
This particular home is a single family, 5 bedroom, 3 bath, 2car garage. I have seen similar homes listed for rent at the 1400-1500/per month range.
Not sure what rehab would be yet, as I haven't been inside.
To know if it's a good deal or not, ya gotta know what similar properties in your area have sold for over the past 3-6months. A foreclosure is a pain to offer on. Get a knowledgeable realtor to help you with this one property. They can run comps for you and help you jump through the offer hoops REOs always have. Don't sign your life away to this realtor. One time, one-property inquiry. Good luck @Chris Bork !
Type in "The 70% rule" or "the 50% rule" or "the 2% rule" in the search bar at the top right of your screen. They are good rule of thumbs for new investors to use. I wouldn't commit to buying a house form just those rules but they are a great starting point that I use all the time.
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