How to Evaluate an Investment Property - Part I

I took a look at the 5 - 2 bedroom, 1 bathroom, multiunit in the Washington, D.C. area today. Just to recap, it has a list price of about $650,000. The rent is currently about $950 per unit and the onsite manager pays only $600. That is a grand total of $4400 per month.

I will be getting the income and expenses statements for this property and will do a full analysis so I can come up with a offer that will actually give me a decent cashflow (approx. $300 - $800 per month) if possible. It will definitely be less than the list price of $650,000, which is way too high.

It is a nice looking building.

Here is the front of the building:



Here is the back of the building:



Here is the garage:



Here is the backyard:



The garage has the potential for being rented once fixed up. The tenants pay for their gas, and electric. The landlord pays for the heat. This property is close to transportation and has good potential ..... at the right price of course. I will have a summary of my evaluation and analysis around the end of the week.

I also videotaped my visit to this property. This narrated video covering my visit of the property, evaluation, analysis, and final offer price will be available on my Building Wealth Through Real Estate Website www.housewealthy.com