Anyone can analyze a rental property, but if you’re not careful, it’s easy to overlook significant costs that wipe out your cash flow and put you in the red. Thankfully, we’ve got some timely tips that will help you avoid these critical mistakes!
Welcome to another Rookie Reply! Ashley and Tony are back with more questions from the BiggerPockets Forums and BiggerPockets Facebook groups. Worried that your “good” real estate deal might not be a good deal after all? We’ll show you some of the things you must account for before you buy! Next, we’ll discuss the ins and outs of real estate partnerships. Whose name should go on the mortgage? How do you ensure that both parties own the property? We have the answers!
Finally, how do you make an offer on a property you haven’t seen? What if you receive a low appraisal? We’ll show you how to find “boots on the ground” in any market, renegotiate with the seller, and close on your property for a great price!
Ashley:
Investing out of state can be scary, but we will break down the steps to make your investment a confident one.
Tony:
We’ll also cover what exactly you need to account for when analyzing a deal, along with determining the best partnership for you.
Ashley:
Okay, so we got our first question on rookie reply today. This question is, when looking at the closing disclosure and you see that rent will only cover the taxes and mortgage, if the property management fee is waived for a year, is that worth it? That would mean that the next year after the property management fee is not waived, then you’re only getting about $50 in cashflow. Would that be worth it in a not so appreciating market? So here’s some things to consider for this question. The person row, absolutely nothing else is factored in such as Cap X improvements like roofs, HVACs, usually we like to save a percentage of that, so that’s great that they called that out. They also noted this is for a turnkey provider who is providing the…