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Showing posts from September, 2019

Investor Speak - Is THIS HOUSE a Good Deal?

"Do the Numbers Work?" When an investor looks at a property to determine if it's a good deal, they are really applying some of their own formulas to rate each home.  That's the easiest way to make a very complicated process EASY.  So read along to learn how to create your own formulas for buying a great rental property. Your Formula Starts With You What is your goal?  This isn't meant to be a tough question, but like most people that are considering real estate as an investment vehicle, you want to build a larger retirement nest egg.  That's a fine place to start, but let's make it an official goal by deciding on some specifics.  How much revenue do you want to make in a given time period?  To keep things moving, let's say that you want to make 100k every 5 years. Acquisition Formula Every home has a "sale value" and a "rental value".  If a home is for sale for 100k and rents for 500 dollars per month, that's