Crunching the numbers?
by Surdeep Dhaliwal
I am trying to get a better understanding of real estate investing and you guys provide tons of great information with a genuine sincerity (hard to find these days).
My question has to do with trying to grasp the concept of "crunching the numbers". Let's say you have targeted and acquired a house, you get a good deal below market value or right at market value. It's a single family home and your either thinking of using it as a straight rental property or a rent-to-own type deal.
What sort of expenses do you need to factor in (ie. mortgage, property tax, utilities, etc,.) when trying to determine the rent to charge in order to generate a positive cash flow from your investment? In other words how would one determine if the investment is a sound investment?