If you wondering whether an investment property is a good deal or maybe you are struggling with what to offer, you might want to take a look at these tools. It’s important to know your numbers.
Here is a pretty cool video about a calculator you can use to estimate the maximum you should pay for the property. They also have a number of other Calculators like rental property, Buy, Rehab, Rent, Refinance, Wholesale, mortgage payment and 70% rule calculator.
The New Orleans market is getting tough to find really good deals. You may have to decrease how much profit you expect. To get the superb deals, you may have to first to make an offer (sometimes a blind offer) and be really strong (i.e. all cash with as few contingencies as possible). It can be risky business, but you can always cancel a deal within the due diligence period you feel it’s not going to be a good deal for you and your acceptance level for risk. You need to be crisp on your criteria and have a really good realtor (c’est moi) on your team that will set you up on a property alert.
The deal has to work on both sides and be a win-win. The seller may have mortgages, liens, programs to payoff like road home, back taxes, closing costs and more to think of. While none of that determines the market price and appraisal value, it is a consideration for lowest amount they will accept. The buyer has to think of repair cost, the highest rent they can charge, vacancy rates, after repair re-sell value and other cost. What’s your strategy? Something you might have to re-think your strategy to get the deal to work for you.
I just wanted to let you know about that! Be blessed!