That price is WAY too high… $50,000 to $100,000 too high, and that would be if it were in perfect shape.
Anyone who buys that place will have BIG negative cash flow problems. That means not only will it not bring in enough to pay for itself, you will have to dig into your pocket every month for hundreds of dollars to subsidise your tenants.
There are some buys out there but you have to know how to recognise them when you see them.
I suggest you go to the main message board, archive search, and search for “GRM” and “Cap rate”.
If you learn about those 2 things, you will automatically be smarter than 99% of real estate agents, sellers and beginning investors.
I found a good looking two family in todays paper…asking price is 209,000. The ad says it needs some tlc…and that the rents could be higher. This looks to me, and i am brand new at this,like it would be a good investment. Rents around here…just guessing because I don’t know the number of bedrooms in each unit would probably range in the $750-900 area.
If we could get an 8% mortgage, which my husband could probably get. (my credit is trashed, for the moment…read earlier post) the problem becomes that we have no $ for down payment AND he has no job…I have 3 part time jobs. Is there any lender who will work with us? based on all of your collective past experiences? Should I contact the broker? I would love to fix something like this up and sell it!
Jeanne (who has all the enthusiasm in the world but no money…
