How I Quickly Analyze a Rental Property for Cash Flow | BiggerPockets
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- Опубліковано 5 лис 2015
- Looking to invest in rentals? Well, if you don’t have the right math going into a property, you’ll never get the right profit coming out of it!
That’s why in this video I’m going to show you how to quickly, easily, and correctly analyze a rental property for it’s cash flow potential. We’ll dive deep into a real-life property that popped up on the MLS today and I’ll show you the exact steps I use to decide how much to offer.
Enjoy!
Check out Brandon’s #1 bestseller, Rental Property Investing, at BiggerPockets.com/RentalPropertyUA-cam - Фільми й анімація
I freaking love how your mind works, especially near the end where you analyzed the women's taxes to get a feel for her financial literacy - i.e. - if she didn't have her taxes paid, she'd be more willing to sell at a lower price. Great psychological tactics man.
Facts!
It is fun watching stuff from the past and hearing the numbers they used.
This was so helpful, Thanks Brandon for sharing this one. I'm a visual learner and this really helped me understand as I'm currently listening to all your BP podcasts and trying to learn how to analize a deal! Great work here.
I just started watching these videos... this is really awesome! I super appreciate the time you take to do these! Thanks Brandon
This step by step breakdown was super good I understood this one very well Thank you Brandon. Would love to see more videos like this using other properties.
Shirley Savage sounds like a Roller Derby name.
I have to say that of the hundreds of videos that I've watched in the past year. This by far was the BEST that I have ever seen because it explained every thing on how to evaluate a potential property in a very short period of time. I'll be looking for more tools on BiggerPockets but for me, Brandon killed it! Thank you.
Thanks Brandon. Walking us through this analysis is incredibly informative and helpful.
This is GOLD!
This is great preliminary analysis that at the end draws a picture for you and saves you so much time. This all should be done BEFORE taking the time and seeing the property physically.
Thank you, Brandon, so informative! I watched your analyze podcast yesterday and learned lots. I have a lot to learn, but I am ready to analyze, analyze, analyze! I went Pro this morning and I am ready to purchase my first home along with the help from my husband who has been a part of Biggerpockets for awhile.
Really enjoyed this walk-through. Directly actionable content is especially useful for those like myself that are trying to figure out how to just get our foot in the door. Thanks for creating this!
+IBAKSMAK Analyzing a property/ finding a great deal is one of the hardest parts about REI. It will take a little bit of time but you will get there! Thanks for watching! Glad we could help :)
Nice video. Its a lot more factual and hands on, which is always helpful i've discovered in being helpful to new investors. My favorite video to date.
Excellent video thank you. Bigger pockets has definitely helped me become more of a confident newbie!
Thank you very much for creating this calculator in Bigger Pockets and for walking us though this real world example of using it. This has been so helpful, yes!
OMG this content is straight gold. Learned so a lot. Once again BP comes in clutch
Awesome Brandon! love it, I have just finished analyzing 3 deal con BP calc, and now I am going to review them again, base on this video!!!! Thanks again.
After dealing with my parents terrible God awful real estate dealings. And personally swearing of real estate for life based on those emotional scars. You have single handedly sparked within me the interest to get back in the game. Thank you for the guidance.
I love how hands on you are with everything.
Great job, Brandon! Thank you for detailed analysis!
Awesome video! Really gets into the nuts and bolts. Thank you.
I can't believe how cheap housing is in this part of Washington. Even for 3 years ago.
Awesome Sauce. Video. Great Information as always. Love this podcast.
Thanks for sharing your knowledge. Priceless.
fast forward to 2021 - This property would have appreciated REALLY WELL
If I could find this deal in my town I would jump on it now!
Not concerned with ROI, rest of the numbers work really well, especially for long term. Thanks for the informative video!
Great walkthrough.
Thank you very much!
Cash flow is king!!!
Thank you for this video. Great great content for beginners
BP should add a slider bar into the program that allows you to alter the purchase price (leaving all other measures the same) to more quickly provide the values of interest (cash flow, ROI, etc.)
Tim Rose +BiggerPockets +Brandon Turner This is an excellent idea. I’m a Pro member and I would find this feature extremely useful. At the very least, you should allow us to input everything on one page.
Excellent video! Thanks Brandon!
This was awesome. Hope there's more like this on your channel.
Very helpful! Good tip for newbies on looking up tax info.
thanks for this. thinking about purchasing rental properties but dont know how to decide
Excellent video Brandon! Thanks
This was the best breakdown of running numbers that I’ve seen!! Made it realistic and now I can run numbers for a property I’m considering. It’s gonna be a bit more interesting since I plan to rent one of the units (duplex) to a traveling nurse (mid term) but I have some baseline numbers from FF. Thank you!
Nice video, I like the rental property calculator and I use it a lot. It gives you a second "gut check" and really helps you avoid some common mistakes when you are all excited about the property.
, at minute 11:00 or so, when Brandon discusses the total cash needed and goes to the left column to highlight all those numbers.....I would suggest that those numbers highlight automatically when you hover your cursor over total cash needed.
I guess I should suggest this on BP and not UA-cam . Love this calculator though.
Very informative and inspiring. Thanks for sharing!
Great video! Thank you Brandon.
great video - love the yip and the judging look from Brandon at the start :)
+Jeffrey Kelly LOL he's a funny guy ;)
Great content in this video Brandon. You break the process down well.
+ReallyCheapFloors.com Thanks! Glad you found it helpful.
Thank you for this! This helps so much!
Was that Charlie talking before you in the video Brandon? Priceless! Great vid BTW!
What a neat way to gather data!
Love this video! You guys are awesome!
Great information, thank you
best intro ever.. random dog bark ^^
thanks for the great video.. joining bigger pockets because of you dude :D
Brandon that's a great calculator. I use excel to return the same results. Everything is on 1 page. I don't need graphs, but could insert them. I sometimes insert a picture of the property. It takes 15 - 30 seconds to get the numbers in excel.
At the end of the day, if you're able to negotiate the price down that far...well that would be nice everywhere. Where I am in Missouri, it's rare you get to negotiate down. So a 4-6% return is doing good. And the stock market is too much of a gamble for me.
Great video, thank you sir.
A great video. Convinced me to get the Bigger Pockets Pro membership.
Question: why when you looked up the owner was the property listed as commercial? I thought anything under 5 units was still considered residential
Thank you Brandon
I love that tool I'm sold thanks
GREAT JOB GUYS AT BIGGER POCKETS!! creating such a useful tool for people to enter all the information (address, mls#, arv value, and purchase price) and then you have your assistants skim through them finding all the hot deals so you can rip them out from under the people who found the deal. and then make them pay for it monthly.lmao. they literally do all the footwork and give you all the info you need. thats why its on your website and not able to down load to their personal computer while offline. im not bashing you, you have came up with an awesome edge on this one. (WARNING) anyone using this program should be very weary about losing a great deal on a place. they are prob using the top 20% roi deals for themselves, and selling the remaning information to investors. people do not be fooled. this business is for sharks. and there is no reason for them to help people because we are competition. do this with pen and paper or make your own on excel. please dont feed the pig.
longview Resident that's exactly what I was thinking!
longview Resident : Imagine having this jerk for a landlord? Yikes!
Then just don't include the mls #, address, or any defining info in the calculator ya numbskull... typical braindead youtube comment
right?! sounds paranoid to me - dude probably believes bush was behind 9/11
he was
this was helpful thanks!
So when using this calculator you are pretty much finding deals for this guy? Awesome!
Amazing video. Thank you.
This is a great video for a newbie like me
Great video thank you! Do you have one for screening tenants including checking their application and stuff?
Hey! Appreciate the content
Great job
Wow this is the best channel ever
I've been using youtube since 2006-2007, I have to say this is the most informative channel hands down.
Awesome. Please make other videos like this.
Awesome! Great video...
Thanks for this!
Q: what if the property seems too good to be true? What are some other things to look into or consider when looking into property remotely?
Everything's nicely explained. Thanks for the upload :)
i always laugh when the video starts and brandon’s dog was like “ooofff” 🐶
Great video!
Great very useful tool! So can you anylaze a potential flip with the same program? Thnx
Hello! Is there an updated version for this? Just wondering if there's one that reflects current prices of Rental Properties as the prices in my area range between 600-900K on average. Thank you!
Great video, I'm just wondering how you take compounding into effect. In the stock market that cash on cash return would compound yearly.
IMO: Putting in the actual yearly Rent Increase (based on past data for this area) + but assuming an average Value Increase. (needs to be more than the % cost increase, else there 's no compounding effect!)
this would be 1 million plus in my area
where do u live? Monte Carlo
@@FF-xl7yw Probably Northern Virginia lol
Same here! Take a look at home prices in Southern Ontario. Anywhere withing 2 hours of Toronto is super expensive now.
Mobil app is a great idea!
This same property today worth $250,000 it was not a bad deal at all
Dog blew my eardrums out at the beginning.
That was the woof
Thanks Brandon! Besides checking the local tax assessor records for outstanding tax bills, what other places do you check to figure out likelihood that the seller is motivated? I'm wondering if looking at local building permit reports can help convince owners to sell a property?
Hoquim / Aberdeen are depressed areas, lots of drugs and high unemployment, yeah the price is cheap but if you are looking for cheap property I would go to the tri city area like richland, Yakima, areas, where atleast there are some things going on. I live near Portland Oregon and this triplex would be around 400,000 here.
Excellent, a little fast, but that is you. Material was great though, thank you
Great podcast
Very helpful
awesome content
I wish we had those prices down here in Miami
Great info thanks! Who was cooking the feast and doing the dishes in the back ground???
Thank you so much walking through this for us. We are newbies are in our or analyze 100 properties in 90 days phase of learning. Ask you suggested as a start to our real estate learning process we are still searching for a NJ real estate agent who has investment knowledge to team up to put us on a MLS emailing list.
Hey BP I’ve been trying to run numbers on some duplex’s in my area (for a house hack situation) and it seems like I’m running negative numbers every time unless I drop my purchase price to well below a respectable offer. Is my market maybe not good for this strategy or any tips on what I may be doing wrong?
Brandon is da bomb!!
@8:14 the total monthly fixed expense doesn’t add up. It looks like when you input a custom expense the calculator double counts it?
You guys just sold me on that calculator wow
best video Ive seen
I like the triplex kind of look cozy from the outside. Has a country look of no side walks with time can do some work, If plan to manage it.
It sold for 140k in 2018 :0 and would go for around 155k now :0... That's a 7%+ year over year appreciation on an already overpriced property
LOL I was just thinking "I wonder what the property is worth today?" Would have been a nice ROI. Although the land is way overvalued IMO.
It’s a hot market up here
if there are actually 2 lots here is there value in selling off the second lot?
Do you count the estimate reserve in your closing cost? I’m looking to offer a property for 55k but my closing cost with estimate prepaid is over 3k.
Any reason why you don't take into account tax savings (depreciation, interest deduction), and equity gain from paying down the principal?
thanks
I know it was a while ago but 70k for a triplex. here in Canada currently, you'd be lucky to get one for 700k
Thanks! That's an inexpensive property that still didn't cash flow. The $100 a month flood insurance really hurts. Most places across the country don't have that added expense. HOA fees really hurt cash flow in developments in south Florida.
Love watching your channel. where can i get this software?
could you do a video on court house auctions? I'm paying for title searches and getting ready to attend one.
This was great and took the unknown factor out of analysis. After you analyse can you save it and go back to it on your website?
Would be cool if you could paste the link to the property into the BP calculator and it would just import all the data for you