This is just not enough info to give an answer to your question - so much more goes into it.

If you are working with a REALTOR they should be able to talk about comparable sales and educate you on this property so that you feel very confident with your decision/purchase price. If you don't trust what your agent is telling you, or you don't feel they doing a good job that is an issue you need to deal with.

If you are looking at a FSBO and are not represented then it will take a lot of legwork on your end to get educated on the market and property. Pull up the country courthouse records and public sales data online. If you are worried you can have an appraisal done before making an offer, but the bank will want one done by their own appraiser so you may end up paying for two.

Thu Mar 20 2008, 21:31

Hello Linda:

A great question to post on this board. Would love to be able to help, but this is something that requires knowing the details about the property you are interested in and it also requires a local expert's opinion. So, sorry, I can't quite help.

However, I am glad to see that Bridgette, a great Trulia contributor, has already started to help you. My feeling is that she will be able to provide you with better assistance if you can provide her with more detailed information about the property you are interested in. So, I would take up her offer and contact her if I was you.

Best luck, and let us know what you decide to do.
Sylvia

Tue Sep 25 2007, 21:47

Hi Linda. I think you have received some very good advice from Bridgette. With the proximity to the UF, you should not have to worry about long vacancy periods. I don't know what the going rental rate is for a 2/1 in Gainesville, so it's hard for me to comment on what your cap rate might be. I would definitely consult a tax professional to make sure that purchasing this property is the best decision for you considering your overall financial picture. I wish we had 4 units for $300,000 in California.

Tue Sep 25 2007, 21:35

Linda,
Much depends on the general condition and upkeep of the home. Was this home originally a single family residence converted to multi-family, or was it built as a multi-family structure? Also, there are many other things to consider: type of construction, taxes (deductions, deferments, etc.), NOI (net operating income), vacancy rates, etc. The short distance from UF makes most rental property a wise investment (UF isn't going anywhere!) even in this flat market. Just FYI, since you are from Jacksonville, Gainesville was rated the #1 city to live in America; also, our market here has not been hard hit by the general real estate downturn. Is this your first venture into residential property investment, or do you have experience in this area? If you are inexperienced, I cannot recommend enough the importance of a REALTOR (also with residential investment experience) to assist you in this transaction. If you are already represented, I would be more than happy to provide you with a second opinion as a professional courtesy. Just contact me though my profile and provide me with the address and/or MLS number. Best of luck and happy hunting!

Tue Sep 25 2007, 20:27

The best way to figure out if the price you are about to offer for a home is a fair one is to sit with your realtor and compare other similar properties. Realtors in other parts of the country can not help you make that decision because each market is so different.

Tue Sep 25 2007, 19:45