I came across an 4 bed- 4 bath old house (1916) in MLS. I ran some numbers and it came up with ROI of 16%. I am sure the house needs work, but I think it could be a good rental property. Since I am a newbie, I do not very well how good of a deal is. Can anybody help me to determine what my options are. Thanks.
Need more info than that. How did you come up with 16% ROI? Yes it sounds like a deal on paper based on those numbers but does that include rehab cost? Does that factor in the estimated equity gain from a rehab or just a cash on cash return? And how confident are you in your ability to estimate rehab costs and manage a rehab?
Thanks for answering Bill. I am still learning. Yesterday, I attended small multifamily webinar with Jerry Norton and I began to plug in numbers in the rental calculator.I do not want to waste time so I began working. I also did some research online of the area. Obviously, it needs a lot more research and study. The property is very old and it might need money to rehab. I have not made any offers because i do not feel qualified yet. I can send you the link of the property if you want so you can look at it. I am in the process to make deals, but I know i still have a long way to know, so i want to go slow so I become successful. Tell me where do you want me to send you the link so you can check it out. Thanks again.
It would be smart to pay to have a home inspection done on it.
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