Leveraging relationships and building on a foundation already laid is much more efficient than trying to start from scratch. How to find deals - as you grow as an investor, stop looking for deals and start looking for the people who have / know the deals. (ARV x 0.70) - Rehab Costs = Offer PriceĬapital Gains Exclusion - If you live in a property for any 2-5 year period, you are likely eligible to sell the property for a profit without having to declare it to the IRS for taxes. 80 and then subtract estimated repair costs, you can come up with a consercative number to offer for the property. If you multiply the ARV (After Repair Value) - the price of a home is expected to sell for once it’s ready to hit the market - by.

$1,750 per month should be purchased for $175,000.ħ0% Rule - Used for quickly determining a price to pay for a potential flip property. Mortgage Calculator Plus - App shows you full amortization schedule over the life of the loan and equity in the property.ġ% Rule - A house that rents for 1% of the purchase price should make its money. Permitting / Upgrades - Can look online on city or county records to make sure work to the house was permitted. School Rankings - The worse a property’s school rank, the less chance of seeing a good long-term appreciation. Property taxes are one of the bigger expenses in real estate investing and they really do matter. Property Taxes - You can access property tax records directly from the Internet.

Understanding different areas, emerging markets and price-to-rent ratios is a crucial aspect to real estate investing. Understanding the headache factor of an area is crucial. You don’t want to buy a job, you want to own an investment. Most production isn’t right out of the gate, but isn’t until years later, when rents have risen, inflation has lifted the property’s value and created significant equity. Real estate investing is a get rich slow game. Investing is about finding deals, plain and simple. Investors focus on numbers consumers focus on feelings. You aren’t buying a home, you are buying a small business. People feel uncomfortable buying a property they can’t see.

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