How to Comp Rent/Home Prices and Why Going SMALL May Make You More (Rookie Reply)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 18 October 2024

⏱️ 32 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Let’s say you’ve got $40,000 to invest. You could split the money into two down payments and buy more properties or partner with someone with money and build a bigger real estate portfolio. But even though you CAN do this, it might be a better idea to stay a small investor. Why? We’re talking about it in this episode, along with some of the regrets we have from scaling far too fast. Welcome back to another Rookie Reply! Today, we’re showing you how to run real estate “comps” to find the right rent and asking prices for properties, plus whether or not your new rental will have enough demand to stay occupied. We’ll also discuss when a house is TOO big to house hack and how to find tenants for a rent-by-the-room investing strategy. Finally, can you buy more than one rental a year? Yes! But be careful, doing this could put you in a dangerous spot (we’ll explain why). Looking to invest? Need answers? Ask your question on the BiggerPockets Forums! In This Episode We Cover: How to run “comps” in real estate and estimate rent prices accurately Whether or not a neighborhood is worth investing in with many units for rent already Why you may NOT need to buy a huge house for house hacking Finding tenants when using the rent-by-the-room investing strategy How to build a real estate portfolio with $30,000 - $40,000 And So Much More! Links from the Show Ashley's BiggerPockets Profile Tony's BiggerPokckets Profile Join BiggerPockets for FREE Real Estate Rookie Facebook Group Try the BiggerPockets Rent Estimator Ask Your Question on the BiggerPockets Forums Learn the Real Estate Formulas with “Real Estate by the Numbers” Find Investor-Friendly Lenders Real Estate Rookie 287 - From 70 Hour/Week Burnout to Getting Paid to Buy Properties w/Danielle Daly (00:00) Intro (00:44) Comping Rent/Home Prices (08:21) Too Big House to Hack? (16:25) Starting with $40K and Scaling SMALL (26:23) Post Your Question! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-472 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Okay, let's get your questions answered. I'm Ashley Care and I'm here with Tony J Robinson.
0:07.3	And welcome to the Real State Ricky podcast where every week, three times a week
0:11.0	will bring you the inspiration, motivation, and stories you need to hear
0:14.0	to kick out your investing journey. And today, we're diving back into the bigger pockets forums
0:18.5	to get your questions answered. And guys, if you're listening to the real estate rookie podcast just
0:23.4	know the bigger pockets forms are actually the best place for you to quickly get all of
0:28.3	your real estate investing questions answered by tons of other real estate experts.
0:33.4	So today we're going to discuss
0:35.1	how to pull cops when you're analyzing your first deal,
0:38.0	how to determine how much capital
0:39.7	you actually need to get started,
0:41.5	and ways to transition out of your first house hack.
0:44.4	Okay so let's get into our first question. This question says hi everyone I'm
0:49.2	looking to buy my first long-term investment property and I'm not sure whether I'm approaching my
0:54.4	research for rental comps correctly. Please give me any feedback. So what I'm doing is
1:00.4	typing in the zip code into a rental statistics like Zillow. So when this is pulled
1:06.4	up, the data shows a market temperature on the page that says warm or hot. So then from there I'll look up a house I might want to buy in that
1:15.6	zip code. If it's a three-bed two bath, I will look up three-bed two bath
1:21.6	houses if that's what the market showed for that in
1:24.8	that zip code. I will choose similar houses as to the one I chose when I got the
1:30.2	gauge for how much I can rent it out for. Along that process I will come across a few
1:35.5	homes in that zip code that have been on the market for a while, 64 days, 96 days, etc.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.