Reddit reviews What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures
We found 6 Reddit comments about What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures. Here are the top ones, ranked by their Reddit score.
IMO, multifamilies are all about the numbers, if they don't work, don't force it, move on to another opportunity, there are tons out there. I recommend these books:
http://www.amazon.com/Turned-into-Million-Estate-Spare/dp/0671253689
http://www.amazon.com/Estate-Investor-Flow-Financial-Measures/dp/0071603271
Investing in real estate really requires that you know a little about a lot of things. These are the books I used when starting up:
General Overview:
Multi-Family Introduction:
Flipping Introduction:
Real Estate Formula Primer:
Landlord Tax Basics:
That is a good intro for books...BiggerPockets is always good too. However, most investors will tell you that there is only so much you can read about real estate. Read some books, get a feel and then go for it. It's the only way you can really learn.
That's a good list, BUT they should be secondary reading, sure you can get insights from them that can relate to any type of investing but you want to be RE specific right? Here is a list I would look into.
Private Real Estate Investment: Data Analysis and Decision Making
Real Estate Finance & Investments
Multifamily Housing Development Handbook
Real Estate Market Analysis: Methods and Case Studies, Second Edition
The Complete Guide to Buying and Selling Apartment Buildings
How to Pay Little or No Taxes on Your Real Estate Investments: What Smart Investors Need to Know
Investing in Real Estate
Real Estate Investing, Cash Flows, and Due Diligence: Making Better Investment Decisions (Volume 2)
What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures
That's a lot, also info in those books may over lap so pick which ones you would want to answer your specific questions. Hope this helps.
Start with having an efund big enough to cover 3-6 months expenses for yourself. For the first rental property, you need the DP, the closing costs & any costs to ready it if it's not rented, and then also a property efund of enough to ride out an eviction and/or major repair, whichever is more expensive. My eviction estimate is 3 months expenses + 10k in turn over costs, but that amount would vary so much based on your locality (how long an eviction takes) and the property type (multiple units would reduce risk). Also factor in more money if it is an area where rentals only start at a specific time of year. Vacancy should also be factored into return estimates- 10% is conservative. Ignoring vacancy is a big mistake for new investors and it has a big impact on the calculations.
Check out my favorite RE book: http://www.amazon.com/Every-Estate-Investor-Financial-Measures/dp/0071603271/ref=sr_1_1?ie=UTF8&qid=1450024749&sr=8-1&keywords=what+every+real+estate
If the rent vs. value is really as high as your projecting, this will be a good place to buy. But just slow down to reduce your risk. Also consider diversifying- being all RE and no stocks is a bad idea. I have 3 properties and the equity is the majority of my net worth. I will probably reduce to 2 or 1 at some point in order to diversify and reduce risk. Foolish young decisions :)
Read this book: http://www.amazon.com/Every-Estate-Investor-Financial-Measures/dp/0071603271
BiggerPockets.com is a decent place to start, they put together a free eBook for beginners here: http://www.biggerpockets.com/real-estate-investing
Books are great, so here are some:
The Richest Man in Babylon okay, you're probably saying, "But TIGit, that's not a book on real estate!" It's a book on investing, and I consider it a must read. This is the book that started me off in life, I was gifted a copy by my grandmother when I was 16. Read it.
What Every Real Estate Investor Needs to Know About Cash Flow and 36 Other Key Financial Measures this one is one of the best books on real estate. Real estate is a numbers game, there's a lot of emotion with all the negotiation and finding motivated sellers, but you need to keep the numbers in mind first*. If a property doesn't have a profitable enough margin you need to know to walk away. And to know "the numbers" this is the book.
How to Manage Residential Property for Maximum Cash Flow and Resale Value this one is for if you plan on building wealth through owning property and landlording. If you just want to be a wholesaler, buy a cheap personal home, or flip, this isn't the book for that. But it's important to keep in mind because the other REIs you compete with have this in their heads, and you should too.
Real Estate Finance and Investment Manual I don't like "fluff" books. Those quasi-motivational garbage real estate books are so common, but this isn't one of them. Stay away from those "Rich Dad Poor Dad" crap, those are just feel good word vomit. It reads more like a textbook, but it's good. None of that "Find the leader in yourself!" bullshit.
The 4-Hour Workweek this one also isn't a real estate book, but a must read. Ferris is a salt-and-burn serial business man, so bear in mind that he as a person is sort of shitty. I don't advocate taking advantage of people. But this book opened my eyes on how much of business is done. Exporting labor for cheap, using automation to save time and costs, selling products, setting up a business, and marketing. It's all there. And he's right. Tim Ferris is probably a sociopath, but he's dead on in how to succeed in business.