Updated over 5 years ago on . Most recent reply
First Time Home Buyer
What are some things I should look out for when purchasing a home for the 1st time. I want to know how I can predict for future references if a property would be profitable or not. Are there any equations or tips anyone can give me for analyzing deals. I want to buy a rental property.
Most Popular Reply
Before you buy anything it's important to consider your financial situation. Buying property can be a curse if done incorrectly. That fact that your asking these questions is great thing. It's important to have an emergency fund of 6 months. It's smart to pay down any high interest debt. I'd take care of that before talking to banks (if you need one).
After that is addressed you start thinking game plan. Why do I want to buy this property? Are you looking for cash-flow (land lord life) or flip profit? Sometimes when you find a GOOD DEAL it steers you in the right direction. Not every property makes since as a rental/house hack/flip. It depends on the location and numbers.
My advice? Get more education and learn the numbers. It's not a sexy industry. Most of the books are dry and boring but you will learn. The calculators on this site are okay but building a few spreadsheets in excel is better. You can customize how you see fit and add metrics once you UNDERSTAND them. That's how I choose to learn but that's just my opinion and I'm far from being an expert.