How to Evaluate A Real Estate Investment Deal in Orlando (resources)
We buy them in all conditions from junkers to dollhouses. Our specialty is damaged houses like fire, storm, mold, sinkholes, and termites. But we also buy homes with more typical issues like leaking roofs or aluminum wiring. Even if the home needs minimal work but you just need to sell quickly, we can help. We buy sinkhole houses. Sell Apopka home fast cash.
We talk with lots of people looking to buy real estate investment properties inOrlando and surrounding areas. Some of them know what they’re doing… and some of them are still in the learning process.
But, since our entire business is finding great deals… and often passing those deals onto real estate investors like you at huge discounts… I thought it would be a great idea to share with you some resources on how to effectively evaluate a real estate investment deal. This works in any market… Orlando, surrounding areas, Florida, any other states across the country.
When you really boil it down… evaluating a real estate deal is a pretty simple process. If you’re looking to buy real estate as an investment, wholesale properties, hold them for rent… whatever, one of the most important parts is buying it right (i.e. – not overpaying).
So lets dive in.
How To Evaluate A Real Estate Deal – (for single family houses)
There are just a few main elements when you’re evaluating a deal.
- Cost of repairs needed to get it back up to good condition
- The after repair market value of the property (what it’s worth and can sell for today once it’s fixed up)
- If you’re going to buy and hold for a rental… you need to know what you can rent it out for and what your “debt service” (mortgage payment) will be. Knowing this makes sure you’re buying so the property cash-flows each month
There are other things you can (and should) look at too… but those 3 are the main important things to look at first.
Cost of Repairs
One of the things you should do when you are looking at a property is to find out how much it’ll cost you to fix it up to a point where it’s in great shape. In other words, the cost of repairs. This could be a new roof if it needs it, carpet, paint, a new kitchen, yard, maybe even more.
To find a good estimate of the cost of repairs, the best advice we have is to get to know a contractor or two in your area and have them walk through the properties with you the first few times… have them quote out the repair cost… and build that into your offer.
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