From the course: Virtual Investing in Real Estate

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Questions to ask before purchasing

Questions to ask before purchasing

From the course: Virtual Investing in Real Estate

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Questions to ask before purchasing

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- [Narrator] So did the cash sales resell within a year or two? What are the price differences? If someone bought a property for 100, it was a cash sale but sold it for 105. That's probably not a flip, could be a rental though. And then you want to look at rental rates versus cost to buy. So if you can buy a property, say for I don't know, 100,000. Let's say you buy it for 60,000, you put 40 grand into it, it's going to be 100 grand, you might have a mortgage on it. Let's say mortgage taxes, insurance, all the costs are going to be a net total every single month of roughly 800 bucks. Well, if you could rent that property for 1,100, or 1,300, or 1,200, is that going to produce cash flow every single month? Yes, it is, right? So that's what I mean. That's why in New York, living in New York, I'd buy a property for 400,000, and it rents for like 1500 bucks, that's not going to cash flow,…

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