My wife and I are about to close on our first rental in a couple of weeks. A second opportunity is in the works quickly and I wanted to get your advice. I have a 4-plex listed at $242k. Gross annual income is $38,400. Taxes are about $5k/yr. What other info would you want to know before going to look at the property or are the numbers good enough to just tie it up in a contract before it is gone? (This would be my first multi-plex, so advice on that would be helpful too!) Thank you for your help!
If you look under the "analyze" tab at the top of the page you can get some help there, you can get a few free analyses even as a free member on BP. I think under the "Resources" tab, under "fileplace" you may find some spreadsheet to do analysis as well.
If you starting out to learn about analysis of rental properties, you want to know terms like "cap rate", NOI, the 1% (or 2%) rule and the 50% rule among others. These are great ways of looking at the numbers of a property before making a decision. And note... Rules are just guidelines.
To you question, you will need more than gross annual rent and taxes. What about vacancy, maintenance, property management fees (if you're not going to self-manage). You need to do due diligence on their rental records, tax records, etc.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing