steps to invest (agent, investment, properties, rental)

[Terra20020]

hello,

can anyone give me the steps to research properties in az to see if they would be a good buy? I'm looking into buying my 1st multi family investment property

[399083453]

Rent - expenses = profit

Rent must be greater than expenses.

Its a pretty simple formula, but many people just dont get it.

[Terra20020]

how do i figure out what the rent is ? how do i find out the expenses?

sorry i am very new. every property i have seen has been in poor areas and look a lil run down

[399083453]

Look for rental properties similar condition as yours. Ask how much they charge for rent. Check town hall for tax expenses. Check sewer and water dept for billing history. Everything else you will have to estimate. Count on the place being vacant some of the time, no income.

Typically, poor areas have very low rent but the expenses are the same as a nice area. So your profit margin is lower. Its also much harder to get rent from poor people. You may have to evict people on a regular basis.

[Captain Bill]

Find an agent in your area who specializes in multi-family properties, and s/he can guide you.

From 1 to 4 units is considered residential, however, 5+ is considered commercial and agents who only service single family residential should not attempt to work in the 5+ commercial arena.