I’m preparing to look for 1-2 properties to invest in this year, and I don’t have a solid method to evaluate them. In my mind I need to find or develop a spreadsheet that can run some basic calculations and couple that with personal knowledge of the area. Just not sure where to start.
What I do have in my head is the 1% rule. I also have the notion that I need to avoid the MLS and find advanced deals, but this is one I saw today after driving past the house every morning on my way to work. I was curious and pulled up the listing.
http://www.zillow.com/homedetails/1247-S-Brook-St-Louisville-KY-40203/95203908_zpid/Seller is an LLC(has another home in city for sale as well), and the house is asking $139,900. 3 unit old Victorian building in a high rental area between a college campus and downtown. I once lived in the same area, seems to be gentrifying/cleaning up some, but is block by block and still lots of homes that need a renovation. Current rents total $1760 ($460, $650, and $650). Property taxes run 1.3% annually of assessed value. Currently employed full time, just by looking at zillow rates, I Expect to get a loan between 4.5-5% or better, property insurance to be ~$700-$800. Can reach out to the mortgage broker I have worked with in the past for a real quote.
Is it worth looking at and estimating repairs? Should I look more into off MLS listings(auctions, pockets, wholesale)? I've reached out to a local young investor I found on BP and plan to meet with him soon for some face to face mentoring.
Appreciate any help! I have one fake rental(former residence, so far doing well but is under the 1% rule) and am new to purchasing with the intent to landlord. Trying to find my way off the fence.