Looking for a mentor
My wife and I are planning to venture into rental property investments. Someone suggested that we start with a multi-family home.
Our Broker found a property with the following specs:
List price: $369,000.00
# Efficiencies: 1 ........... Average monthly rent:$495.00
# One bedrooms: 1 ........... " " " $450.00
# Two bedrooms: 2 ........... " " " $750.00
Total units: 4 ........... Annual gross income $29,040.00
Gross month rent $2,420.00 Annual expenses: $2,670.00
My questions:
1. Is there a set strategy to determine rentability of property before buying?
2. How much is considered a reasonable income after expenses?
3. Is proximity to home a critical consideration when deciding on where to purchase rental property?