How much should you pay for a property?

Here are some general guidelines:

Become intimately familiar with the property value - preferably through a certified appraisal

Make a determination of what you will do with a property in advance of making an offer. (For example, if the mortgage payments on a rental property will be too high to cash flow if you pay $300,000 for a property, then you know you $300,000 is more than the property can afford.)

When making a property offer, always offer less than you are willing to pay in the beginning of the negotiation

If your exit strategy will involve flipping or resale to a third party at some time in the future, make sure that the price you pay leaves room to offer the third party a price that will make the deal attractive

Larry Potter
www.ATicketToWealth.com