Analysis of multi properties

1 Reply

I’m looking for my first investment property. I have found two different deals I think could really be good. I’m just unsure about the numbers. The first is 3 2 br 1 ba duplexes on one property. I am not sure how to break it down and figure out what number makes sense to purchase. The second is 3 3 br 2 ba on separate lots. With this one is they want to sell them together. I think they came up with the price like you would on commercial property or apartment complex. So is that the way I should analyze it. Or should I analyze each home separate and then add all 3 numbers to make my offer??? Please help! Any feedback is greatly appreciated. The market in my area is moving so fast, I need to get an offer in the day they come out or it’s gone. Also, how do you buy bank owned properties? Thanks. Have an outstanding day!

@Robert Phillips ,

Since you are looking to buy either a duplex or 3 SFH, I will analyze the duplex as a SFH and each of the 3 SFHs separately and add them up to see what purchase price makes sense to move forward.

First, know what do you want to achieve from your investment in terms of returns. Then analyze the Properties and make sure you use realistic rents for the income and include all expenses (debt, taxes, insurance, utilities, repairs, capex, Management fees, etc.). If you are not sure how to do it, I will use the Rental Property Calculator from this site (https://www.biggerpockets.com/buy-and-hold-calculator). It is a good start and you won’t miss any input necessary to make a good purchase decision.

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