I am new in real estate. I already rehabbed and flipped one property but found it is too difficult to find another deal, so I decide to put more energy on rental property. I live in Missouri.
Here are my questions need your suggestion:
If you have a duplex with 3bd,1bath each side,
how much money flow do you expect normally?
how much money flow do you guys earn per property per month?
Mine is only $250-300.
what price range do you look for when target investment property? I ask this question is because lots of properties here for sale are 20-35K higher than the appraisal value. However, what I am looking for is the price lower than that. can you share with me how much you can accept for a deal?
What investment strategy do you guys use? I loan the money from bank, and always try to put down minimum downpay and longest loan period.
I can’t find good deals recently. I don’t know if I am too stringent. I don’t like to buy properties, with lower price, in "NOT VERY GOOD "neighborhood. However, I do know lots of investors buy properties there. How do you guys think?
I've bought only a few rentals, but I believe any positive cash flow is good. More is better, but any is good enough if property values are going up rapidly.
Where values rise slowly, you should usually be able to get better cash flow.
“what price range do you look for when target investment property? I ask this question is because lots of properties here for sale are 20-35K higher than the appraisal value.”
Are you referring to tax assessed value ? ? Tax assessment is usually well below market value. Appraisals are usually done when a property is sold and should reflect market value.
I buy some houses (very few) at market value and some at 50-70% of market value. I'll pay more for a house in a neighborhood that is rising in value. I try to buy the ugliest house in a good neighborhood and rehab to make it the prettiest. I always avoid buying in a neighborhood I would not visit late at night. I usually aim for the lowest out-of-pocket costs possible and a 30 year fixed mortgage.
wise idea Ray!
By the way , do you have any idea about how to find a property’s most accurate market value? county’s database ? I am afraid that the county only keep the market value when house get sold, while that database can not reflect its current market value. I also tried to search in bank’s database, however, they don’t keep buying and selling records for the small city. that makes me headache.
Your post is very helpful, giving me lots of HINTS!
THANK YOU!
Donald are you renting to sec 8 or the general public?..I had properties in New Orleans where one side was paying the mortage(900) and the other side was profit 900 3bd 1ba duplex. Another property… mortgage was (600) one side paid 630 and the other side paid 700 2bd 1 ba duplex both was rented to very good sec 8 tenants. If its not over 200 a month profit, to me its not worth the time to me
I have never paid full market value for a property and I feel that 50% LTV is a great price to strive for. Its really hard to compare yourself with investors from different states but you find the best deals when listing for yourself.