Ok so I got the wheels goin.
Today I set up my office area. I made folders for FSBO’s, Positive Cash Flows, No Goods, and Supplies.
So far I’ve been using the cash analysis sheet thats in teh Carlton book to do a prelimenary cash flow analysis using a 6% interest rate on a 30 year loan.
I do now need to know some great ways to find out rent in the area so I can figure out how much income I’d make accuratly. Also, how do i find a good way to get a pretty accurarte insurance quote.
JP,
It sounds like you’re getting started. I started out exactly the same way - using the forms in the Carleton Sheets course. I still use modified copies of some of the forms - like the move-in/move-out form and purchase contracts. I doubt if you can get 6% for 30 years on an investment property. Interest rates on investment properties are usually a little higher than home mortgages. I’d guess that you’ll be paying 7% to 7 1/2% for the money (no points).
Obviously, before you can determine rents, desired purchase prices, etc, you need to decide what area you will be investing in. Once you’ve done that, you can find the rents in the newspaper and from your REIA members. Once you’ve found a house in your target area that is a candidate, call the insurance company and ask for a quote. Be sure to ask for landlord coverage, including liability insurance.
I still recommend that you look at 100 houses for sale in your area before you start investing. You’ll be sorry if you don’t.
Good Luck,
Mike