I am new to real estate and looking for ways to value a property on my own. I think my biggest fear in getting started is that I will pay too much for a property that I could have done some simpler research to get a better estimate of the price. Any thoughts would be much appreciated!
There are plenty of good books out there along with some great tools. I would google a little bit more and read through some blogs as well as the forums.
Our simple rule of thumb is for properties under 150k that you plan on rehabbing to use 35% costs plus Principle, Interest, Insurance, and Taxes
This works well for us because we know what our vacancy rates will be in our market and we know management. If you rehab and do a decent job, you will have lower maintenance and have typically done some significant Capex work going into the property as well so we lump that into our acquisition costs.