How to Analyze a Rental Property (2023 Market Indicators to WATCH)
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Күн бұрынAnalyze deals in MINUTES with a BiggerPockets Pro membership. Use code “PROANALYSIS” for 20% off + get Dave’s new book for FREE: www.biggerpockets.com/members...
Need to know how to analyze a rental property? If you've got five to ten minutes, you can analyze real estate deals. Even in 2023, when cash flow is low and home prices are high, it doesn't take long to determine whether a rental is worth your money (or time). And, if you're still trying to get your FIRST real estate deal, odds are you're probably spending HOURS finding deals and crunching numbers. So let's speed up the process.
In this webinar, Dave will walk through EXACTLY how to analyze a rental property in minutes, the tools he uses to calculate cash flow, cash on cash return, and more, and how to know whether or not a real estate market is worth investing in. With mortgage rates rising and affordability at historic lows, Dave was STILL able to find a property that produced positive cash flow. So, if Dave can find a deal like this, why can't you? Stick around to learn how to calculate rental property profits in MINUTES.
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Tools Used in This Video
BiggerPockets Rent Estimator: www.biggerpockets.com/insight...
BiggerPockets Rental Property Calculator: www.biggerpockets.com/rental-...
FREE Housing Market Analysis Tool: www.biggerpockets.com/resourc...
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Data Used in This Video:
FRED: fred.stlouisfed.org/
Redfin: www.redfin.com/news/data-center/
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FRED® Graphs Federal Reserve Bank of St. Louis. 2022. All rights reserved. All FRED® Graphs appear courtesy of Federal Reserve Bank of St. Louis. fred.stlouisfed.org/
00:00 How to Analyze a Rental Property
02:53 Meet Dave
03:55 Is NOW a Good Time to Buy?
06:02 3 Indicators to Watch
11:24 Analyzing a Large Market
14:24 Analyzing a Local Market
17:30 Running the Numbers
30:58 Analyze a Rental in MINUTES
@yeahjug03 Жыл бұрын
Your videos are always helpful. Thank you
@susanchagalian8334 Жыл бұрын
Great video! Thank you.
@marcustim832 Жыл бұрын
Been waiting for a deal analyze vid from you guys! Thank you for the thoroughness and providing tools we can capitalize on :)
@nicogarcia6711 11 ай бұрын
this is fantastic!! thank you. looking to start long distance investing and this really helps
@ryansun9468 Жыл бұрын
Regarding the inventory graph from Redfin, does it exclusively include data for existing homes? Should we also take into account newly built homes? If so, where can we obtain data for newly built homes?
@DN-qk4ek Жыл бұрын
I have watched tens of R.E videos over the past 45 days, and this by far is the most actionable video. Amazing content
@christahegedus332 Жыл бұрын
This is a great video. The only thing I notice is, when you put the ARV, you didn't seem to comp the renovated properties around the neighborhood. It seems like $550k ARV was a 'hopeful' goal without any analysis. Could you shed more light on this? Thank you!
@dennishowland7495 Жыл бұрын
David I enjoy listening to your contact you were an expert in analytics which is fantastic as I am now so I enjoy listening to your analysis it’s great you’re giving me a lot of in-depth into the real estate market house adventure offered to my own investments a real estate so I
@davidmeyer1101 Жыл бұрын
Thanks for watching Dennis!
@nickknight1058 Жыл бұрын
This was such excellent information and training. Do you guys have an App for IOS?
@davidmeyer1101 Жыл бұрын
Thanks Nick! Not right now but the tools are mobile responsive.
@okey9904 Жыл бұрын
Hi! I see you mentioned “those who bought in 2010 are happy right now” Then you likened right now, to 2010 But 2010 was after the recession, right? And you said we are heading towards or going through a recession right now. So shouldn’t we assume a recession should cause things to hit lower prices … then after we bottom we can call that new time frame the “2010”? It seems like we’re at 2007 not 2010 in my opinion. Any thoughts? Thank you!
@piRatCaptain Жыл бұрын
Because he doesn't know what he is talking about. He lost the narrative at the peak of 2022
@Ben-lp6re Жыл бұрын
He meant 2008 after crash started, not 2010 when prices were great lol
@egonza7343 Жыл бұрын
Where did you get the chart for analyzing rent growth?
@RealElites Жыл бұрын
Gotta love this channel
@piRatCaptain Жыл бұрын
For the lols
@chriszivalich5700 Жыл бұрын
Can anyone explain the math formula to calculate the annualized rate of return. I thought it was (annual profit / initial investment amount / by the years)?
@andyavila5463 Жыл бұрын
Learned a lot on this one. Thank you!
@davidmeyer1101 Жыл бұрын
Awesome thanks Andy!
@sunnybhatti9567 2 ай бұрын
How to do goog property inspection or find a good property inspector, and how to do your own due dilligence?
@SheAMusicLvr 10 ай бұрын
Hi there - where did you pull the data from?
@tieuvanphan9661 Жыл бұрын
I have opportunity to buy a package of 3 condos in Hilo for AirBnB, can you direct me to how to gauge for rental/house market in Hilo like realtor/investors/management company… much thanks
@tayashavers 7 ай бұрын
So do i need to take classes on macro economic ? Can BiggerPocket provide classes calculations ?
@SherryXShi Жыл бұрын
How can 22 units build on 1.8 AC? Thx for your time.
@jonmalone75 10 ай бұрын
What site do you like to use for your macro data?
@StealthyCowbell Жыл бұрын
Closing costs should probably be 3-4% minimum since you're paying points for most traditional investment mortgages at this point.
@luisarevalo8394 Жыл бұрын
I am actually interested in this property. Could you reach out to me about it.
@cphili1592 Жыл бұрын
22 units seems a bit much for that property.. even going vertical, that would stand out like a mangled toe.
@Red_Black_Key Жыл бұрын
I live nextdoor to a place in L.A. that was a single house with big yard just like this. It got bought...knocked down/gutted out...rebuilt up into a dozen new luxury apartments that used up all the open space. Neighborhoods change over time and a lot of homes will turn into tightly-packed multi units in the upcoming years.
@davidmeyer1101 Жыл бұрын
Yea it does seem like a lot. I’m trusting the person who sent me this deal. I think there development upside either way even if 22 is unrealistic
@cphili1592 Жыл бұрын
@K. L. Burgess II 12 vs 22 is a pretty decent difference. Don't disagree that knocking it and starting fresh gives the opp to add more doors but that doesn't detract from it sticking it out in an ugly fashion. Plus the costs of demolition and construction start to add up pretty quick.
@cphili1592 Жыл бұрын
@David Meyer for sure development upside just maybe not 22 doors haha. Range bound your analysis with top end 22 and bottom und 50% of zoned and im sure the numbers work either way
@MikeHawk143 Жыл бұрын
In the next couple weeks, the California Senate will vote on a bill that would impose an excessive new 15% tax on short-term rentals (STRs) that would make vacations more expensive and financially burden locals who share their home to supplement their income. This tax unfairly benefits the hotel industry and would impact Hosts like you.
@veronicaegidio3595 Жыл бұрын
CA has turned into a Sh@* Show. 7sed to be the best state in the country back in the 80.s and 90.s
@bri-manhunter2654 Жыл бұрын
What do you expect from democrats; they always have to tax the hard earned dollars from those trying to ride to the top, and it’s atrocious!
@angelsegarra1135 Жыл бұрын
I don't get how this video has over a million views and only 302 likes and 8 comments.
@MeltingRubberZ28 Жыл бұрын
There are 23k views
@phil1954 Жыл бұрын
Given that this is a duplex and you will be sharing walls and possibly a yard, don't you think you could actually demand less rent?
@InvestingBookSummaries Жыл бұрын
Yes a single family at those rental prices usually means less rental for MFH typically.
@Kevin-xk3me Жыл бұрын
Why? What makes you say that? How could they demand less rent? Just because they’re sharing with other people?
@BrianGivensYtube Жыл бұрын
For all we know the price in the video might be low and get gobbled up immediately. If there are no bites, then I would reduce it.
@phil1954 Жыл бұрын
@@Kevin-xk3me you're either going to charge a little less to get somebody to want to live in your multi-family versus a single-family or you risk high vacancy. Most people with kids with choose the single-family home over a multifamily everytime.
@phil1954 Жыл бұрын
@@Kevin-xk3me I have several 2/1 duplexes and I get $750/ month for them. I also have several 2/1 single family and I get $900-$950/month for them. It's just how things work.
@bdavis7928 Жыл бұрын
Too much fluff
@arbenpali5124 Жыл бұрын
Why are you yelling
@piRatCaptain Жыл бұрын
4400 a month after rehan and you expect a 550k ARV? Do you like negative cashflow? Lol Careful everyone he doesnt do a full analysis. He hand waves so many rules.The DSCR on it is horrible. You will be losing money every month because you have to pay 7% interest rates.
@davidmeyer1101 Жыл бұрын
If you actually watch the video I literally say the cashflow is low. Point of the video is to teach the steps of analysis I’m not trying to convince anyone to buy this property lol
@piRatCaptain Жыл бұрын
No dude the experience dinvestors can stay in the market becuase they have hoards if cash and equity they can deploy without going to a bank. New investors have next to no cash. This guy is a joke now he used to be smart when the market was going up. He makes his money on social media now.
@davidmeyer1101 Жыл бұрын
Lol I guess someone owes me a check since I haven’t seen a penny of income from social media 😂
@piRatCaptain Жыл бұрын
@David Meyer that's like saying a w2 doesn't make money commuting to work. Self promoting is an ends to a means
@jonmalone75 10 ай бұрын
@davidmeyer1101 what site do you like to use for your macro data?
Coach Carson
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