Do you know how to analyze a property? Success in this business requires at least becoming familiar with several financial measures or formulas to decide if the property under consideration will meet your financial objective; otherwise, how will you know whether it is a worthwhile investment?
How do you know whether properties A, B, or C will be the best investment?
Taking time to run the numbers will make a difference, but unfortunately, far too many do not take the time to evaluate which is the quickest route to disaster. The biggest blunder anyone can make is chasing the deal and paying too much for the property. "Falling in love with the deal and not the property is critical.
1. Analyzing a single-family dwelling is straightforward. The most common way to determine the value of a house is a CMA (Competitive market analysis). Your real estate agent can get it for you.
2. For example, a property can be purchased for $120,000 and require $15,000 of improvements, while comparable properties in the same subdivision are sold in the $155,000- $170,000 range. It will need $15,000 worth of repairs, bringing the total investment to $135,000. It still sounds like a goo