QUOTE (zorant @ Apr 13 2010, 12:45 AM) Greetings to all that have taken the time to read this thread and I thank you in advance. Myself and 2 business partners are currently analyzing different properties in the hamilton area. Our range for our first property is 150-185k, and we are mainly looking at single family homes. Some of the areas that we are looking however do not have many rentals around to compare to. So how am I supposed to know what "market value" is. Also how do you feel about renting single family homes is this a bad route to take.
market value is what people are willing to pay. You look at three comparable groups:
a) what is listed for sale that is similar
b) what has sold that is similar
c) what was listed but did not sell
Once you`ve looked at 5-10 per subgroup in a subarea of the target town you will know what "market value" is.
Real estate takes time to learn .. so take the time to learn it .. and hat includes renting/managing the asset once you own it. That`s where the rubber hits the road !
Why is renting a sub 200K house a bad idea ? It is better than renting a $500,000 house !
related read:
How to get started
http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html
but also: 5 ways to make money
http://myreinspace.com/public_forums/General_Discussion/61-3347-5_ways_to_make_money.html