How To Analyze A Rental Property For Beginners In 2024

Рет қаралды 48,388

Жыл бұрын

In this video, I'll show you how to analyze a rental property for absolute beginners.
Buying a bad property can be a costly mistake, which is why it’s crucial to know how to analyze a good deal.
I'll walk you through the different formulas and spreadsheets that you can use to determine if a rental property is worth investing in.
Don't let the fear of analyzing rental properties hold you back from achieving your real estate investing goals!
✅ ✅ Property Analysis Calculator - 50% off!
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*Please note that the information in this video is for educational and entertainment purposes only and should not be taken as financial or investment advice. Any investments or financial decisions you make based on the information in this video are at your own risk. The links in the description above may include affiliate commissions or referrals, and I may receive compensation from partner websites.

Пікірлер: 109

@markerpetertil 7 ай бұрын

Acquiring my first rental property was a pivotal step in my investment journey. It's not just about owning property; it's about generating passive income and building long-term wealth. Finding the right property, understanding the market, and managing it effectively have been key. I wasnt financial free until my 50’s and I’m still in my 50’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made

@christiniajoneswell2874 7 ай бұрын

I'm exploring different investment opportunities Mark and would appreciate more insights on how you invest

@markerpetertil 7 ай бұрын

I initially started my investment journey with the guidance of an investment advisor named Regina Louise Collaro, she's widely recognized for her expertise so you might have come across her name. Her transparent approach granted me full control of my investments, and her fees are reasonable, considering my return on investment. Now, I benefit from her income strategies every month.Nonetheless, it's crucial to conduct thorough research before engaging with any investment advisor.

@christiniajoneswell2874 7 ай бұрын

That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?

@markerpetertil 7 ай бұрын

Regina Louise Collaro is based in the United States and can work with anybody wherever they stay. If you would like more information on reaching her, you can conduct a search online.

@eadad4371 7 ай бұрын

Personally, I'm blessed and realizing I'm not the only one working with Regina Louise Collaro. I will consider myself lucky. I've been able to feed and make a living through her advice and great work. For such a person as Regina, I owe her gratitude, support and endless prayers as it is not easy to gain access to such a competent and reliable adviser. Who isn't just wise but has all it takes to handle an investment and is good at what she does

@newtut2398 Жыл бұрын

This is helpful. Thanks!

@seanlovesrealestate Жыл бұрын

Wecome!

@haydenletch 5 ай бұрын

Your model calculated property tax wrong (185,000 * .02 = 3700)

@pottersis 10 ай бұрын

Really cool I will use this in my future!

@seanlovesrealestate 10 ай бұрын

Best of luck on your journey!

@BigRedShooter Жыл бұрын

Thank you

@seanlovesrealestate Жыл бұрын

My pleasure!

@jPuma817 5 ай бұрын

great video, but you wanna charge us for an excel spreadsheet wtf....

@cookeymonster2319 3 ай бұрын

Thank ya so much for making it easy for me to learn i cant wait to begin my journey

@seanlovesrealestate 3 ай бұрын

You got this! Best of luck ☺️

@MissEe2023 8 ай бұрын

Thank you!! I’ve been wanting to see someone in real time evaluating a property, where to find costs, etc.

@seanlovesrealestate 8 ай бұрын

Glad it was helpful!

@MM-overtime 5 ай бұрын

I did not see the link for your spread sheet. Also great thorough video

@seanlovesrealestate 5 ай бұрын

Thanks! It’s in the description. ☺️

@tyrone-tydavis5858 5 ай бұрын

1% rule is total BS in an appreciating market. You make a major mistake by buying into it because it completely misses rent and property appreciation as well as the tax reduction value of the property. Real case current example... Purchased a 4‐plex for $210k on 2018. Rents were

@rolandhdz17 6 ай бұрын

good stuff

@seanlovesrealestate 6 ай бұрын

Thanks!

@DoubleBob Жыл бұрын

I'd like to see a video about property managers. What to expect, what to look for, how much to pay them, how to do it yourself, what the risks are.

@seanlovesrealestate Жыл бұрын

That's a great idea. We'll work on it and hopefully have a video about it soon!

@grant7245 Ай бұрын

Hello, I believe the Gross Rent Multiplier has the wrong cell reference, at least on the version I received! Love the calculator, thank you.

@seanlovesrealestate Ай бұрын

Thanks for getting the calculator! I just checked and I'm doing Gross rent/Sales price, so it looks right to me. What cells are you expecting it to reference?

@keaganbrenkman6978 6 ай бұрын

Is the cash on cash return monthly or yearly?

@cyprus-selectestates 6 ай бұрын

I year is 12 months

@noampaley Ай бұрын

If that property listed for a 185, and sold before for 84, I It's more likely that the renovation costs was 50k, not 30k - that will give the investor 20% of cash on cash return, which is pretty good for a flip transition. Another thing that you should put in that the interest rate will be mach higher if you bay a property in such condition, and you gonna have couple of vacancy mouth during the renovation period

@AdutMathieu 9 ай бұрын

Can I use this method in Australia?

@venusdyk637 2 ай бұрын

Love your videos! Have you ever thought about giving your calculator for free?

@seanlovesrealestate Ай бұрын

Thanks for watching! This one took a lot of time to make and works really well for analyzing deals. We include it as part of our course (remote rental riches) but it's also really affordable by itself :).

@michaelespinoza4200 5 ай бұрын

Love the spreadsheet calculator, super simple

@seanlovesrealestate 5 ай бұрын

Glad you like it!

@crypto_beast369 Жыл бұрын

This was very informative, but can you make a video on short-term and long term rental properties. Airbnb etc

@seanlovesrealestate Жыл бұрын

That's a great idea. Thanks!

@jnice2074 7 ай бұрын

Question: is the total roi the home appreciation + coc return? Or just home appreciation? Thanks

@suggesttwo Жыл бұрын

Fix and rent.

@seanlovesrealestate Жыл бұрын

Yes!

@trevoradams7225 4 ай бұрын

Must be nice finding houses for 80-150k. That's what half the cost of lots go for in Ontario currently. Can you do a breakdown for Ontario? Be curious what you can find

@seanlovesrealestate Ай бұрын

I'm sure there are places in Canada with those price points. You just have to look!

@CalrosACJ55 3 ай бұрын

What do the calculations look like if you’re trying to house hack your first home

@seanlovesrealestate 3 ай бұрын

It's the same thing, except the numbers you put for "rent" will be slightly lower

@haydenletch 5 ай бұрын

The GRM calculation is wrong on your model. It should divide yearly rent, not monthly

@seanlovesrealestate Ай бұрын

I used the monthly gross rent version. But I can adjust it in the next version :)

@veronicachung4220 Жыл бұрын

Dont see link and coupon for the spreadsheet?

@seanlovesrealestate Жыл бұрын

Hello Veronica. Property Analysis Calculator - 50% off! sharonsean.teachable.com/p/property-analysis-calculator?coupon_code=SEANYT50&product_id=2808384

@helenat1259 Жыл бұрын

Where's the spreadsheet and coupon?

@seanlovesrealestate Жыл бұрын

Hey Helene, I added it in the description. Property Analysis Calculator - 50% off! sharonsean.teachable.com/p/property-analysis-calculator?coupon_code=SEANYT50&product_id=2808384

@realisrare420 2 ай бұрын

I have things set up well enough to buy a home! But I’m 28, we do need a house, but I’m thinking of buying a duplex instead, and renting both parts out and continue to rent myself..

@realisrare420 2 ай бұрын

I’ve just started my investment journey a little over a year ago, stocks, roth, I have a decent paying job, making 5k + in PA. The duplex I’m looking at is 145,000. I have the 3.5 percent for a FHA, but I wouldn’t want to live in the home because of size, and the area. Rent could roughly be 800-900 bucks, both units are 2 br. They would get filled up quick! I think I could hold off a couple more years until I purchase a home! Maybe a good chance for me to make some more income!? What you think buddy 😂

@realisrare420 2 ай бұрын

Mortgage for the house would be roughly 900-1000 a month, I could charge 900 for just one of the units.

@user-bf3op5yq8q 9 ай бұрын

Sean please is it advisable to buy a condo

@seanlovesrealestate 9 ай бұрын

I'm not a fan of condos

@shellym79 Жыл бұрын

There are places in the us where you can rent a house for $1400 😮 I can't get a 1 bedroom apartment for that in Massachusetts😢...I need to move.

@KentPaul Жыл бұрын

Chicopee MA avg rent for 1 bedroom is 1k

@seanlovesrealestate Жыл бұрын

Some of our homes rents for under $1k!

@pfan8758 Жыл бұрын

real estate price increased a lot since pandemic, its really hard to find ones that meet 1% rule now.(one month rent=1%of home price)

@seanlovesrealestate Жыл бұрын

It's always been hard to get into real estate but as properties in one market get more expensive, you should look to other markets that have more opportunities.

@V-Phoenix 10 ай бұрын

@@seanlovesrealestateGetting into lots of real estate markets give you more chances and prevent risk so when one gets lowered in value the others will be great . Even tho a begginer move , it is a must do move .

@jakespencely6471 Жыл бұрын

How is it possible to get the 1% rule when house prices aren’t below 400k

@seanlovesrealestate Жыл бұрын

We tend to look out of state in those situations.

@user-bf3op5yq8q 9 ай бұрын

Sean I noticed your mortgage was 30% I don't get it tho after my down payment will the mortgage handle the property payment

@seanlovesrealestate 9 ай бұрын

The mortgage is a payment plan so that you pay off the loan that you got from your lender. They'll sometimes wrap in the insurance and property taxes too

@KaiPlays572 Жыл бұрын

I have no idea what half of what you said meant. Maybe a video to break down some of the terms?

@seanlovesrealestate Жыл бұрын

Thanks for the feedback! Which terms were you confused about? I can make a dedicated video that breaks down all of these details :)

@KaiPlays572 Жыл бұрын

@@seanlovesrealestate I think 'terms' might've been the wrong word. I mostly don't really know what's happening on the spreadsheet. What are the calculations used on it and might I be able to do them myself?

@footyxeditimsubbingtoevery5457 9 ай бұрын

@@seanlovesrealestateI agree, I had no clue what was happening please make a full video explaining this

@matti2226 Жыл бұрын

Any recommendations for someone wanting to invest in Los Angeles?

@seanlovesrealestate Жыл бұрын

Most of my friends investing in Los Angeles are either flippers, Airbnb hosts, or are doing something funky with multi-family. I haven't really figured it out so I can't give you too much advice :)

@matti2226 Жыл бұрын

@@seanlovesrealestate thanks Sean!

@seanlovesrealestate Жыл бұрын

No problem ☺️

@investment6503 8 ай бұрын

Thanks for sharing! It’s very helpful. I’m wondering if you could make a video of how you can forecast the rental price will be going up 2-3% every year. If I’m a renter, I’d think if I’m paying for a higher price, why not move to a new one for the same amount of money? Everything will be new and fresh.

@kennethastudillo2642 11 ай бұрын

Shawn tell me i bought a house for 40k and pple that pay me the rent are paying 1k a month is that ok?

@seanlovesrealestate 11 ай бұрын

If you can get that rent, then that's a pretty good ratio!

@kennethastudillo2642 11 ай бұрын

@@seanlovesrealestate awesome bro thx for reply I just bought the home :)

@brandonolivera2105 Жыл бұрын

Can we use a dollar amount for property taxes on the calculator or does it need to be as a percentage?

@seanlovesrealestate Жыл бұрын

It's coded to take in a percentage but if you really want to, you can replace the output with a dollar amount!

@epictetus3406 Жыл бұрын

Since learning to analyze properties I realized what a bad investment real estate is. Thats why most youtubers are teaching people how to analyze instead of investing more themselves - the returns are dismal.

@seanlovesrealestate Жыл бұрын

Real estate investing is not a get-rich quick scheme. The total returns are often higher than what you can get by simply putting your money into the stock market. You also get great tax benefits on top of all of the gains. So it's actually an amazing investment.

@V-Phoenix 10 ай бұрын

@@seanlovesrealestateReal estate is about getting rich in tranquility . To also get rich but to keep that balance if not making it better . Real estate is known as the safe method of getting rich . I also thought of investing in stocks but it is too risky . There are 2 things i would invest in . Solar panels cuz they lower my electricity bill and I get 12 to 18 percent returns . And ofc real estate my favourite milker .

@V-Phoenix 10 ай бұрын

@@seanlovesrealestateIn a way real estate is like cooking an egg . If you coon in high heat is going to finish early but dry but if you cook in low heat , it is going to finish lately but it gets smoth and creamy . But real estate is more complex that it

@footyxeditimsubbingtoevery5457 9 ай бұрын

What about fix and flipping? It that also bad

@user-wf1rq1yo2t 6 ай бұрын

I’m not lazy because I’d rather spend 12.50$ on a spreadsheet that would take me an hour to make lol it just makes sense

@liamcoetzee1583 10 ай бұрын

What would be a good Cash on Cash return if you are paying for the property in cash?

@seanlovesrealestate 9 ай бұрын

ideally 10% or higher, but it really depends on your goals

@avivkedem3601 11 ай бұрын

They probably bought that $84K property cash..

@seanlovesrealestate 9 ай бұрын

This was just an example property that I found online.

@shumatsuopost Жыл бұрын

Great video! Analyzing rental properties can be tricky, but you explained everything so clearly. This is definitely a great resource for beginners. Thanks for sharing!

@seanlovesrealestate Жыл бұрын

Thank you, Shu Matsuo! ☺️

@NextShotPickleball Жыл бұрын

Absolutely unrealistic in today’s market.

@seanlovesrealestate Жыл бұрын

It's not unrealistic as long as you are putting in the work to find good deals.

@liamoneil2254 Жыл бұрын

@@seanlovesrealestate Absolutely! Opportunities are there, you need to find them.

@lesterdiamonds27 3 күн бұрын

@@seanlovesrealestate I have 900k I see a property in a major metro in a solid area for 1.1M. I would need to take out 1-200k loan and would have no money in reserves. If everything checks out and it looks like cashflow would be about 1k a week or 4k a month after all expenses, if everything checks out should I pull the trigger?

@romangarcia8114 Жыл бұрын

When does the 1% rule not apply? For example if you purchase a home for 600k you would have to rent it for 6k/month. It's a little steep for rent. Appreciation in the area is great, but the rent would be closer to .7% or .8%

@seanlovesrealestate 10 ай бұрын

Definitely! The 1% rule is just a rule of thumb and not a hard guideline. If you really like the property and location, then it's ok the get less cashflow.

@tw2800 10 ай бұрын

The 1% rule tells me to pass on this one.

@seanlovesrealestate 10 ай бұрын

Yea, especially now that rates are much higher than before.

@hf9714 Жыл бұрын

is so easy to create a exel sheet and do the math but this guys are trying to sell the exel sheet, madness!

@seanlovesrealestate 10 ай бұрын

You can definitely try to make your own spreadsheet, but it'll take a lot of time to get it right. Good luck!

@Strikegaming16 Жыл бұрын

First one

@arthurbernestine2524 10 ай бұрын

Wow, why charge beginners to use excel calculators when there’s much bigger KZfaq channels giving them out for free. You’ve lost all credibility. Your in it for the $ not to truly help others escape their financial burden. I’d never recommend your channel to anyone, I stand on that. I teach beginners to stay away from channels like this, ones that sell a dream and cause you to buy all their products thinking your going to get rich fast and only do they realize this is not true once they’ve spend over $2,000 on your courses, when the information is free on other channels. It’s a very LONG game till you get your first check. You can spend 7 months watching and paying for courses and still haven’t made a single sale. Otherwise, good value in your video.

@seanlovesrealestate 9 ай бұрын

I charge $12.50 for the calculator that I built from scratch which is comparable to one meal at McDonalds. You can make one yourself and give it away for free if you want

@Adrianna-Weeks 4 ай бұрын

@seanlovesrealestate Ай бұрын

Thanks, but it took me a long time to make this calculator and the cost is less than what you'd pay for a meal. If it'll save you time and potentially thousands of dollars from buying a bad deal then I think it's worth it.