What is a good way to determine the value of a rental property you would like to buy?
I am interested in investing in some leasing property and I want to know what a excellent method is to determine how much I should pay for a leasing property based on rent recieved.
For occasion one duplex I have looked at has collected an mean of 11,500 a year over the last 5 years. But, it is for sale for 275,000. That seems like a high asking price based on the amount of money it is generating.
(I know the amount of money a leasing property is generating is not the only factor, but I reckon it should be an simple way to narrow down my options.)
Thanks!!
The best thing you can do is contact a local Realtor to have them run a Market anaylis on the property. The vaule is not nessasarily based on the rent potential but the cost per unit and the mean sale of other properties in the area. I am Realtor and work for a National company if you would like I would be pleased to give you a few recommendations on excellent Agents in your area. Send me an email at srmheath@yahoo.com if you are intrested. Best of luck!
some counties (like where i am from, miami dade county) publically tell the estimated value of properties. but, often this value is only a fraction of the market value of the property.
you may possibly always do an appraisal , but these can be a small pricey.
http://www.realestateworldsite.com/Real_Estate.html
thats a excellent site that clarifies what appraisals are and the process of getting one.
Hi I am an agent and the #1 question I get is the one you questioned.
People either want to know what THEIR house is worth or one they are about to buy.
My web site is hooked up to the title companies and you can see what any house is worth free. Please save to your favorites when there.
Now the way you do it for free is go to site below and click PROPERTY RESEARCH Then it will show a photo of the land or house and what its worth.