There simply is no substitute for a thorough property evaluation using all of the mathematical valuation tools available.
What is your gross potential income - the rents you can count on to be paid regularly and on time?
What is your breakeven ratio calculation (fixed costs/gross profits) for that magic turn to positive cash flow?
What are all your potential expenses and risks?
What is the property's investment potential? (Use the cap rate calculator at www.deangraziosi.com for this.)
Your lender may keep you focused, because they will likely want to see numbers that assure them of a performing loan asset. But in the end, doing the math well is your responsibility... and to your benefit.
Sure, it takes work to find the right properties. But it's not complicated. You don't need any special education or skills. It's all about gathering information and making decisions based on hard factual data, proven calculations, and a little bit of luck.
Hey, if a naive kid like me - who came from no money, had no mentors, and never went to college - can do it... you can too! By acquiring the right knowledge and taking the right actions, your first deal could be just weeks away.
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