Comparing two properties

3 Replies

Hi All,

I am trying to decide which property to invest in. All inputs are welcome. Both are at the same price

Property A: Lot is 7,000 sq ft and the house is 2,700 sq ft. 4 bedrooms with an extra room that can be converted to another room and 3 bathrooms. It needs work on restructuring 1/4 of the backyard and some cosmetic work inside the property. 3 car garages.

Property B: Lot is 6,600 sq ft and the house is 2,500 sq ft. 4 bedrooms only with 3 bathrooms. Everything is well kept and is in really good condition (Like a model home). This has a 3 car "tandem" garage. 

I want this to be a buy and hold property (at least for now). Which one do you think will be a better investment (cash flow wise and value wise)? Thank you

Not really enough info to evaluate.

Depends on market value of both properties - are they listed at fair market values?

If the two properties are located in close proximity of one another, then I would look at the price per/sf to determine whether property A's extra 200 sf and additional "bedroom" is worth its current listing price since the real value is after repairs. If not, there's a point of negotiation to bring down purchase price. 

I think it depends on what you can get for rent on each house.

We would all need more data to help you. Here are the things to consider:

After Repair Value of the home

Renovations required (cost)

Fair Market Rents

Property Taxes

Costs of the homes so you can calculate cash flow

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here