1st Investment Property

Greeting Everyone,

I am about to purchase my 1st investment home this weekend or the following. I have read several books and listened to audio cd's. I have obtained quite a bit of knowledge and I know there is a lot more to know. Question I need help with is if there is a simple property analysis theory that someone can give me that I can do when looking at the properties to give me an idea of monthly profit or negative cash flow?

Thanks in advance!!

Comments(6)

  • ray_higdon7th December, 2004

    A good calculator is on Russ Whitney's site under student tools. A quick calc is if the monthly income is less than or equal to 1% of the purchase price, it's worth looking into. Example: A $300k property would need to be making $3,000 a month income to be a possible deal, not that I would buy where the income is 1% but if it is close you should at least try negotiating. Another good book is Robert Allen's Nothing down for the 2000's.

    GL
    [addsig]

  • grneydgy7th December, 2004

    J,

    If you email me I can send you a MS Excel spreadsheet I designed to figure if a rental will be profitable for my family or not.

    Basically, you need to know the Fair Market Rent for the property, the taxes, insurance, and what percentages of rent for Vacancy, Maintenance, and Management. The calculator will give you your breakeven mortgage amount... that way when you go to get financing you can know more clearly what you are looking at.

    Click my profile to view my email addy...

    good luck,

    Aaron H

  • grneydgy7th December, 2004

    Also, if you have Quicken you can take your breakeven mortgage payment and plug it into a reverse loan calculator... you input your monthly payment, the interest rate you are shooting for and it will tell you the maximum loan amount for that particular property.

    Keep in mind this isn't factoring in a down payment OR 2nd mortgage.

    Aaron H

  • JRendell8th December, 2004

    grneydgy,

    I can't seem to email you. Do I need to join for the monthly subscription?

  • grneydgy9th December, 2004

    J,

    I got your email, but I could not respond to it. Give me a call and I can email the spreadsheet to you.

    208 640 3701
    call anytime

  • CaliforniaDreamin15th December, 2004

    Hi Ray Higdon,,
    I looked at the Russ Whitney Website, can you tell me the name of the calculator you are speaking of. I could not tell which one, there are so many and I wasn't sure if I had teh one for RE. Thanks.

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