Newbie landlord
Hey everyone. I'm learning about real estate investing and want to learn more about being a landlord and buying properties right. I'm convinced single family homes are not for me. I'd rather leverage my income in a duplex or triplex for starters. I've read where CAP rate should not be your only factor in purchasing a property. Obviously cash flow is a major factor as well. What other factors should I use or consider before purchasing a property?
Here is a property I am currently looking at. Can someone help me analyze this and determine what a maximum allowable offer price should be?
Asking price is $199,900
Cap Rate 5.40
| Gross Ann Inc | $20,100 |
| Total Ann Exp | $9,297 |
| Net Operating Inc | $10,803 |