Well hello all! I'm actually 21 years old and was renting from my grandmothers double. She has me paying a steal of $500 a month in rent and the tenant next to me paying $1200 a month.

My grandmother is getting older in age and offered to sell the property to me. My question is where do i go from here. The property is about 3700sqf.

Since this is my first investment property i would really like any advice.

Thanks!

Josh

You evaluate the property and have a plan on what you want to do with it. Any investment is a mathematical problem. You look at what its actual market value is and what it value to you is... they are typically not the same.

From your investment plan how will you use the property, what are the cost other than acquisition that you will face each month and each year. What are the anticipated repairs and on going maintenance cost for the next 1, 2, 5 and possible 7 years? What will be its value them and what would your cash flow be after all cost. All cost is a lot bigger than most new investors ever consider.. you need to study this and possible get professional opinions on the specific property.

Understand what your financial situation is and what your credit score is and what you could qualify for in a mortgage and if you want to have that financial obligation.

You need to know what the market is for the specific type property in the area. If you had to sell, how long would it be and what would be your cost in doing so all need to be known. This would be all in your investment plan for the property.

Do the math and make a plan, then check the plan... that is what investing is about, not guessing about it or not having a plan.

Not an expert, but heres a little advise.
you need to search online and learn how to apply GRM(Gross Rent Multiplier)

I have not done it in a while, but to see how much income producing property is worth you multiply the yearly profit by 5-9 depending on the condition of the property. and there is more to it in GRM.
Hope it helps.