First property to make an offer on! Need some help :)

[Seth B.]

Hello All,

So I went and saw a property yesterday that I think will be perfect for my SO and I! BUT I need to figure out the numbers first to make sure it's an actual property that will "work" for me.

The property is a duplex... one side is 3 bedroom then other side is 2 bedroom. This property isn't even on the market yet because the dealer wanted to see if they could sell it quick to anyone. So I'm thinking motivated seller?

So the question that I have is how do I actually "crunch" the numbers? What documents do I need so I can find real numbers and not pro forma numbers? Also what kind of expenses do I need to take into consideration besides electric, heating, water and trash?

I think if I can figure out realistic numbers and I get a positive cash flow. I'm going to make an offer! Things are escalating quickly over here.. Any help would be apprecieated.

Thanks,

Seth

[Jared Craig]

Hi Seth,

I'm new to real estate investing myself and just purchased my first duplex too. A HUGE help was Brandon Turner's Investment Calculator spreadsheet that can be found in spreadsheet section of the 'File Place' under the Resources tab at the top of the BP page. I think it is listed as Brandon Turner's spreadsheet -Rental/Flip/Hybrid calculator. Also, watch his video on buying a multi-family place.

https://www.youtube.com/watch?v=-YTvYm-kb1w

He walks you through the process using that very spreadsheet, it might answer a lot of your questions. Good luck!

Jared