Determining what price range I should be looking for

Greetings all,
Sorry for the duplication but my last post seemed to have problems........
I have just completed Deans book and am so excited over the posibilites that lie ahead and want to get this party started! I am quite fortunate in my situation both credit and savings wise so funding is not a problem. But on the other hand, my current income has dropped due to being cut to a part time position at work. (the bright side to that is that i have TIME) So, my basic question is how do I caluculate the purchase price range I can hunt for? Because no matter how much I may make when the market turns - (I figured I'm in a temporary hold market)if I cant find a renter right away I will be the one paying the mortgage. And after countless hours of researching houses in good neighborhoods in my area of Jersey they are not going to be in the 40-60,000 range like most of Deans stories. So how do I calculate a starting market figure for myself?
Thanks so much!

Since you can login to this site, you have access. To the left look for STUDENT RESOURCES, then CALCULATORS & TOOLS. Under Real Estate Wealth Management there are all kinds of helpful tools that DG has provided!
Good luck !

Texas Irish Lady

Laura,
This is what I have learned from the live calls and courses. TIL is right this site has a lot of information at your fingertips. What I have been trying to do for the the properties I want to sit on and rent, is to find a renter first, see where they may be looking to rent. This will give you an idea of a "growing neighborhood" to invest in. Find out how much they are willing to spend for rent each month or a ballpark figure. Everyone has a price in mind for what they want to spend. Then I would start looking through your county auditor's records or tax assesors records and see what/if there are any foreclosed properties in that neighborhood or near by. These will be your best bet to find that house in the 40-60K range you may be trying to get. You have the same luck I have and found other vacant homes in the area and be able to make an offer on one of them as well/instead.

Keep looking, eventually there will be a rock someone else hasn't looked under.

Thanks for your help guys......I'm diving in and getting started!

I would have to agree. Having a list of interested renters ahead of time will help you to know what areas to be looking in and what type of price range they will be able to afford. We recommend that you are making at least $100 extra per month with each rental you have.

Looking at pre-foreclosure and foreclosures are great ways to find cheaper homes. If the homes don't have enough equity in it where you wont make enough money you can always talk to the lender and see if they are willing to do a short sale on that property.

Also working with a real estate agent in your area will let you know what the low to middle income price ranged homes are in your area.

You may also want to get pre-qualified for a loan to find out how much you can afford to get and if you will be able to make that extra money each month.

Good Luck!

Greetings! Since I made the first post on this thread in April, I read the book, did all the research and coaching lessons, and then in July I found my first house, bought it, rehabbed it and sold it. Closing next week! Incredible, right?!?!?! As far as my next purchase, after watching Deans latest deal of the month on tax sales - I am going to explore different avenues and plan to attend the sherrifs sale tomorrow to watch the process. I have already seen 4 of the homes to be auctioned and am looking forward to observing the process of the sale. I feel this could be a very good avenue for me. As always - thanks to everyone for the support and well wishes and right back at ya!

That's good that you're checking out all aspects of rei so you can see where your 'niche' will be. You're one smart lady!! Let us know how it goes.

Ella, I have done 2 deals, the first one I did well on the seconed I broke even. I use a agent, and she does a good job BUT, when the profit is close I lost most of it to commission. I don't really want to not ues her but I have to make money! What do you suggest? Also I get a little scared when I get ready to do a deal, I am very positive and know this is the way to make good money but sure would like to learn how to go into these deals end force the nerves out of the picture.One more thing, Should I try to buy some of these houses to rent of resale? I can get funding OK but I think that if I tie up funds in a rental then I am not sure If I can go and get more money to do other deals ?