Analyzing a potential opportunity [Newbie]

[Michael Nardella]

I am the first tenant in an apartment that had formally been lived in by the landlord for over 45 years. 

It is located in a nice area of downtown Boston where prices don't tend to fluctuate. My lease has expired, but the owner and his manager (former wife I believe) are now renting it to me month to month. Once I leave they are going to put the apartment on the market.

I could see myself living here if I were to purchase the apartment (or rent it out). As the first offer I believe I may be able to acquire the apartment at a discount to market. When I rented I was able to negotiate a significantly lower rent as the owner and manger did not know how to list the apartment online. I also feel as if there will be a sense of urgency to sell it once I give my 30 day move-out notice.

[Paul Timmins]

@Michael Nardella

Welcome. 

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). Find them through Google and meetup.com

Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook

To find out about an area go to IREM.org search for ARM certified property managers. Call 5 ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal. You will have solid info to work with.

You can also search NARPM.org for the RMP (Residential Management Professional) and MPM (Master Property Manager) certified.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good Luck

Paul