picking a good property

2 Replies

I am very new to real estate investing. I have stumbled into a couple of rental properties that I pad cash for and would just deposit the rent checks every month without thinking about if I was making enough, charging too much etc. I have taking some of the money out of these properties to buy my next one. I have since learned the meaning of cash flow. I am negative cash flow about 50 bucks on one property and breaking even with a $0 being made on the other. This has opened my eyes to how difficult it is to find a good deal. I have spent weeks researching properties but find have become paralyzed by the thought of pulling the trigger and buying the wrong one. Is there any advice someone who has been in my similar position can share with me???

Originally posted by @Andre Smith :

I am very new to real estate investing. I have stumbled into a couple of rental properties that I pad cash for and would just deposit the rent checks every month without thinking about if I was making enough, charging too much etc. I have taking some of the money out of these properties to buy my next one. I have since learned the meaning of cash flow. I am negative cash flow about 50 bucks on one property and breaking even with a $0 being made on the other. This has opened my eyes to how difficult it is to find a good deal. I have spent weeks researching properties but find have become paralyzed by the thought of pulling the trigger and buying the wrong one. Is there any advice someone who has been in my similar position can share with me???

 Before looking for another, I would focus on what you have.  Can rents be raised? (check out rentometer.com for maret rent estimations) Can expenses be reduced?  Can processes be improved?  Build a good operational foundation first before deciding to buy more. 

Once you are ready to buy again, check out this guide on how to analyze deals.  

https://www.biggerpockets.com/renewsblog/2010/06/3...

Hi How we doing!!

I understand!! The first thing I would do is to address the properties that you have.  Look to see if any value can added to the property, therefore allowing you to increase the rent of the properties.  As far as looking for new properties to buy, I would keep an eye on craigslist, county home auction or possibly looking for a quality wholesaler.