What are some of the guidelines I should follow when trying to figure out if a deal is good or not?
Say for example i'm getting $2000/month gross from a 4 unit in my area (it's cheap around here)
That house would probably cost around $120,000, which makes about an $860 per month payment for mortgage with 0% down
What are some of the percentages I should be subtracting to get a rough estimate of the house?
All I know is 7-10% for a property management company and about 15% vacancy rate. For taxes, insurance, repairs, etc....NO IDEA
Can anybody give me a general guideline to follow?
15% vacancy is rather on the high side. I normally go with 10% for vacancy along with 10% for maintenance. Taxes can be precisely calculated from your tax accessor's website (most of the time its online), and for insurance I'd call your agent and ask for a quote.
I got that from going on foreclosures.com and looking up the community information
For most of the towns around here it was around 13-14% vacancy so I just madei t 15 to go on the safe side when doing the numbers...I dunno tho i'd have to check with some realtors around here though to get better numbers
Anyway, I'll try to find the tax office around here...thanks!
Free eBook from BiggerPockets!
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.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you