is there a formula you guys follow to know weather it will be successful?
hello im looking for advice in buying my first rental property. what should i be looking for and stay away from?
byu/Unfair_Cycle4370 inRealEstate
Posted by Unfair_Cycle4370
4 Comments
Here’s the wiki for the real estate investing wiki: [https://www.reddit.com/r/realestateinvesting/wiki/index/](https://www.reddit.com/r/realestateinvesting/wiki/index/)
I’d stick to that. There are a lot of good books on the list.
Unfortunately, there’s a lot more bad resources out there. Reddit consistently is misleading and underestimates the costs; not even 5% of comments or posts in that sub accurately evaluate rentals.
Every time I’ve looked at an AI’s analysis, it was off by 6 figure amounts.
Stick to the books.
Figure out the math.
Know your market. Know you costs to put a rehab into service. Know the rental market. In short- math it out. Evaluate risk reward like any other investment. Account for vacancy and repairs.
It’s not a good time to buy rental properties. That’s all you need to know.
Look at property taxes, homeowners insurance , and HOA fees to see what the actual cost of the ownership. These are good for right offs/deductions, but often don’t generate enough positive cash flow. Just my advice from someone that owns a rental.