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How to Analyze a Rental Property (No Calculators or Spreadsheets Needed!)

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Comments How to Analyze a Rental Property (No Calculators or Spreadsheets Needed!)

I made a new video that explains how to do deals in 2023 if the 1 rule or other cash flow rules of thumb don't work: youtube/2Q3rZ9VeXt4 Comment from : Coach Carson

Thank you so much for this video! Completely new to REI I stumbled upon a property that seemed like a good deal but needed a video to help me confirm it with numbers This video is exactly what I needed Comment from : Victor Mutta

I started looking into real estate and so far your guidance and info is the best to help me understand more about the process But I do have a couples of questions, how do I know the rental price of the property and how to factor in the lost since we can’t guarantee there is someone will rent it when we need or rent not as yearly as in your formula? Comment from : Vu Tran

Great video! Comment from : Wild Child Sweet Life

what if the 1 rule is way off but CAP rate is 10 I can't see how the 1 rule is good as an indicator as houses at least in the UK are expensive compared to the rental income Comment from : Martyn Coates

Very helpful! How can I get a copy of the cheat sheet? Comment from : Angela Pennella

This is the inverse of the cap rate right? Comment from : A D

In AU no way you can ever meet the 1 rule Comment from : F-Bomb Camaro

Great job with the breakdown Comment from : karen white

Such a great video!!! Thank you!! Comment from : Deb Loui

My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit Comment from : Ghan Yt

Great sensible content Comment from : Michael Cale

Excellent job Comment from : Michael Stroud

Thank you for simplifyingbrTexan Comment from : Leigh

CoachCarson, Do you typically look for rentals in densely populated areas, suburban areas, or small towns in more remote areas What are the Pros/Cons of these different areas? Comment from : Mike Kropp

liked it Comment from : D M Miller

How do you apply the one percent rule to a property that's currently vacant? Comment from : Tony Ellis Martinez

He gave some really usefull information Comment from : Mitchell Smith

Buying a new house next month for our family Keeping our current for a rental is what I was thinking We owe 160k, worth 290k Mortgage is 1k a month can rent for 1900$ a month Would you rent or sell for the tax free equity? Comment from : Robert Marquez

For the 1 rule, how do you know how much the monthly gross rent would be for a property you don’t own yet? Comment from : Thomas Price IV

Great video! Comment from : Joe Yossarian

Is GRM obtained with value divided by gross income or value divided by noi? Comment from : FSAoO LLC - 1st Samsung Chromebook Red

This is exactly how i have been calculating for every deal Comment from : AKEWSD

If u suck at math, u should not buy Comment from : AKEWSD

Clemson math makes sense 😂 Thank you so much!! Comment from : BrentS100 L

Great GREAT VIDEO Coach !!!! Thank you for it !!!! And to all you Fault Finders, NaySayers, and Folks just Loving to fire their Glockswhy don't you just Holster your weaponyou Backseat driver You You guys are the WORST Anyone with Half a brain would know IMMEDIATELY that these Analysis Formulas ARE ONLY GUIDES There are MANY VARIABLES to consider But I ain't goin into it here You Gunslingers would Miss my point anyway GUARANTEED brbrAnd speaking of CaliforniaTHE GOLD RUSH IS LONG LONG OVER WITH So if you're still there you're either Wealthyor on the Gov't dole Unless of course you got 1000 plus Units to show us Do you ????brbrAnd the Beach Boys AND THEIR Hit "I Wish They all Could be California Girls"Are LONG LONG GONE TOO The real California girls They're in Miami now 👍👍 Comment from : Doug Adam

Where do you get the info (rent, expenses) of a property before you buy it?? Comment from : Samuel Boorse

Do you have any guidelines for roughly how much should be set apart for capex+maintenance for roughly a 2000sqft SFH? Obviovusly will vary a bit by market but trying to get in the ballpark Was thinking something like $200/mo capex (roof, hvac, appliances) + $200-$300/mo general maintenance for around $500/mo total? That would leave $36k at 15yrs for roof/hvac/other stuff and $2400-$3600 a year for general turnover, repairs, misc other stuff Comment from : Neil

Thanks Coach, that was very helpful and I used your calculations for the multi family rentals that I purchased Comment from : Robert Tanko

Great video!! breasy to understand!!!! Comment from : Menachem S

I’ve been doing this since 1992 I hate the term investment property Unless you hire a good manager it’s just another job Comment from : L T

I live in the North Dallas area (Mckinney, Frisco, Plano), and I'm a bit confounded as to how anyone could make an income renting a house up here unless you already fully own it Seems like it's all about the equity and parking one's money in the investment, unless you put in a huge down payment up front Rental type properties are /minimum/ 300 to 350k and the rents will be about $2000 I'd love to build a real estate portfolio, but without a crash, I'm wondering if it's worth the effort However, the potential for equity is huge with the housing market being so crazy here Last 3 years have been insane Comment from : Blitzvogel

damn!!! this hella makes sense not even class teaches thesebrnow this is what i called normal English class math Comment from : LittleChino

Great video! Thank you Comment from : Soraya Quirino

What a great video, thank you! Everything was explained in a clear and concise manner, with no fluff Just what I was looking for Again, thank you! Comment from : Katherine Lött

You just scored a new sub Comment from : Glen Garbera

That works great until some senile Leftist Declares an Eviction Moratorium and half your tenants buy big screen TVs, New Furniture, vacations, jewelry, durning the eight months it takes the Corrupt Supreme Court to put an end to the freeloading Comment from : MrOramato

Sorry if you've already answered this question but can you tell me how to or where to go to look for rent/expenses information in an area? Is there a website that one can go to to get a general idea or do we have to get this info from the agent or prop management co? Thanks in advance Comment from : D L

Really Comment from : Bri

Uhm cost of property, whats needs to get coverd, how much i want each monthdone! Comment from : Bri

What a helpful video, im an accountant looking to do my fist investment and didn’t want another pep talk video about investing, I wanted numbers and formulas and you did just that, thank you soo much!! Comment from : veronica rosario

I think we should also factor these costs into cost of property while calculating GRM;brStrata (here in Australia, property management body is called Strata) - usually is between $600 to $1300 per quarterbrCouncil fees - $250-$350 per quarterbrWater fees - $180-$300 per quarter Comment from : Umair Javed

I see the 1 rule and understand how would it work if a buyer says they try to be at 2-3 rule Any help would be great thanks Comment from : JLC

Thank you This is a great help for me coz Im thinking of a rental bsns by first qtr of next yr, hopefully Comment from : Rosylin Hortelano

This analysis fails on the following assumptions 1 It compares projected rental income to projected financing cost, neither of which are fixed 2 It assumes the tenant will pay the rent they will not 3It assumes 12 month out of 12 month occupancy it will not 4 You have not provides for property taxes whilst empty, letting fees, maintenance fees and dilapidation over time these are substantial 95 of rental properties over time do not make rental profits if all costs are added The vast majority of the profit is made in capital gains Except now in the UK house prices are at 992 income in a rising interest rate environment whilst the baby boomers are crashing the demographics ie moving from the population that buy houses to the population that sells houses Hence there will be no capital gains until houses reprice at a level affordable to the average man in the street Traditionally that used to be 3 times average earnings last achieved in 1995 So expect a large drop in housing prices As the landlords find themselves cash negative in a dropping market they will compete to give away these properties Comment from : David walsh

Great video Thank you Comment from : Christopher Perez

Your content is so helpful I own you one Comment from : Mohammed

Cool 👍🏽 Comment from : R

Basically 1 rule is any property with GRM below 833 Good to show how they correlate So gives you and idea of a good GRM if prefer that method Great video Comment from : Adam De Caul

All very cool with real fancy words but…in how many properties can you make 1 a month??? It is veeeeereeyyy hard !!! Comment from : Ricardo Nery

Ok we definitely need a calculator for these calculations Comment from : aaayyy

I just ❤ this video This is what I have been looking for the longest time Thank you, Coach Carson! Keep them coming! 🎉 Comment from : Joy Legaspi Caballero

This was a good video I learned alot I have always wondered how other people figure things out and think the figures👍Thanks Comment from : Connie Smith

So if you have to use the back of an envelope, it's not a good deal? Says Warren Buffett Comment from : Connie Smith

Nevermind, you answered my question about taxes You said you wouldn't talk about taxes in this video Comment from : Connie Smith

On number 1, "income" do I have to pay taxes on that? That would be about half gone right there if I would have pay taxes Comment from : Connie Smith

3 month Tbills are paying 48 Now Comment from : scott griffin

Thanks Carson! How much do you deduct from the income for maintenance and vacancy for the income formulas? Or is it so variable that you have to do a deep dive into vacancy rates in your area? Comment from : Raphael B

This was a nice breakdown What do you do when you first looking at a property to guestimate what the potential rehab costs are? Is it just experience or is there a good rule of thumb to follow? Comment from : Eric Marquez

This video is Gem for me Comment from : GURU

It can be to the point and brief Comment from : CATS Madera

First three minutes is dude telling us what he's going to do Just do it, already Comment from : L W

The market closed at 8 PM your order would have been accepted but you did not meet the time deadline Or, talk less - make what you say mean more As you get older you'll realize that the famous quote Time is Money - is really true Best of luck! Comment from : Tom Rochford

Great info Thanks Comment from : ugottaluvutube

Concepts are sound, but the numbers are in no way based on reality Comment from : Dave Fabris

Thank you Comment from : Brian Win

⚠ NIAF vs CASHFLOW -- what's the difference? Comment from : John P

this is a gem 💎 video! wow Comment from : Speedy Gonzalez

Stuff like this does not get taught in school At least not any school i've ever been to Thank you Comment from : Benny Acosta

No teaching ability, no Charisma, and has a face for radio Comment from : keith wicks

For the NIAF calculation, for the "financing costs" are you including both the mortgage AND property taxes? Comment from : Corey S

Great video Are you including all monthly expenses (HOA, management fees, water/sewer, etc) in your NIAF figure? Meaning, do you factor these in addition to your debt servicing to arrive at your NIAF number? Because that will certainly influence the CoC return number Thanks in advance Comment from : Stephen Pineau

Mmm mmm Comment from : J White

How about those renters don’t pay rent for months and refuse to move out 😮 Comment from : 林Duny

crystal clear presentation, Thank you Comment from : pulak sinha

Bro you are easily the most honest educational content creator out here on investment in real estatethankyou for not being dramatic for likes and subsI watch this several times to keep me grounded Comment from : Antoine TBD

This video helped me out tremendously, appreciate you breaking it down so eloquently, Ive been trying to get the jist and no one made me get it Thanks keep up the good work Comment from : Geoffrey Forde

Thank you so much!! Comment from : Growportunity

89! 🎉 Comment from : Voltaire

How can I do the info gathering for expenses? Comment from : Geoffrey Hale

Great compilation and support documents Thank you ✊🏾👍🏽💯✌🏽 Comment from : DelsenO Boisen

Very good analysis Comment from : KK

learning something new here,thanks man Comment from : John Chriswel Toropo

Incredibly helpful! Thank you! Comment from : Mikaela Colner

This is not a rule It is your own decision to set it at 1 My father abd i had multi dwelling units and we rent it much more higher than 1!!!! Comment from : Coco9004

Buffet hasn't had relevant advice to the average investor since the last millenium Comment from : Jay

Someone send this boy a video about to cut your own hair! Whoa! Comment from : Jay

Oh My god! In 2023, thank you thank you thank you! As an accounting major i learned 2 formulas that i’ll use forever Comment from : Khalil Sane

Cap rate is a very useful calculation for a person with cash sitting in a CD or money market Comment from : K Smith

how do you figure out the net operating income Comment from : Daniel Shulaw

I ran out of napkin Comment from : Anthony Gonzalez

In India, cities like Mumbai (Bombay) we use 35 to 4 rule this is the ideal rent you can get on the property in Mumbai (Bombay) city Comment from : Raghu R Naik

Nice video, thank you I have an income property that has been rehabbed but has no tenants How can you find the value without tenants? Thank you, Comment from : Rich Cascio

Awesome 👍 Comment from : Apisalome Naulago

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