I am very new in real estate and really want to learn to be a real estate investor. I have read many books and know some tactics to gain profit when buying properties.
But I still don’t know how to calculate the market price of a property. If I know it, I can set a purchasing quotation under it and have a chance to gain profit.
Does anyone please kindly help me on that? I really really appreciate your sharing!
I reommend that you become an expert in your target investment area. Assuming that you live near this area, I would suggest looking at a bunch of houses for sale in your area (looking at both the inside and outside of the houses). If you do this, you will KNOW what properties are worth in your area. This is more reliable and accurate than getting comps or getting values off of an internet site.
Books are great Haigiao, especially to help motivate you through the hard times. But it is much easier to know your market once you have gone out and seen some properties. Once you go out and actually see properties you will very quickly become familiar with your market, but you have to actually go out and see properties to know anything.
A very basis way to cash flow a place is just:
+Rent & laundary
Mortgage
tax
insurance
utilities
montly repairs
That is just a very basic way to cash flow a property that you can get from a Realtor to use to see what properties you want your Realtor to take you to see. Go out and see about 10 places that you cash flowed with a positive result and then 5-10 more again and will be surprised how quickly you learn your market. Then you can learn to create a more complete cash flow analysis on the properties you like.