I am brand new to real estate investing and I currently have an agent as well as a lender in my circle. I am very serious about pursuing rental properties, BUT I live in very hot and expensive market (Washington D.C.) and feel that I will need to invest in rental properties outside of my market. It makes me nervous that I would not be able to see a property before purchasing, so my question is, what aspects of a deal should be attractive for my first deal? I am 23 years old and looking to house hack/use the BRRRR strategy for my first deal and would like to find a house under $300,000, but do not know what to factor into my decision. How can I tell just from analyzing a property if it is going to cash flow? 1% rule? Comps? I have heard Brandon talk on the Podcast about how he can tell just from analyzing a property that it will produce positive cash flow. What plays into this analysis? Would appreciate any guidance!
Run the numbers by running a comparable sales analysis. What have other homes similar to yours sold for? what have they rented for? What's your mortgage payment? Consider all expenses and then analyze the amount of cashflow you can maintain through rent. Is the monthly profit worth the investment? Or is it the refinancing that may seem the most attractive? These may not be the only numbers that factor into your specific deal, but it's a good place to start.
Sava Vukovic, Real Estate Investor from Naples, FL