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

have you ever wondered how to analyze a rental property to tell this a good deal or if it's not a good deal well in this video I'm gonna let you look over my shoulder as I share the approach and the formulas I use to analyze a rental property and I promise you is gonna be so simple you can do it on the back of a napkin an envelope or whatever scrap of paper you might have in fact that's what I'm gonna do I'm gonna draw on a piece of paper and show you what I mean I mean no fancy calculators or spreadsheets in this video and we're getting started right now hi I'm Chad Carson from coach Carson comm I'm also the author of retire early with real estate a best-selling book published by bigger pocket if you're new here this is a channel all about investing in real estate so you can achieve financial independence and do more of what matters be sure to hit the subscribe button in the bell so you don't miss anything now I'm gonna pull out a piece of paper and a pen and show you my back of the envelope approach to analyzing a rental property okay let's jump right in the approach I'm gonna talk to you about today is called back of the envelope analysis back of the envelope analysis and so I promised you in the beginning that we weren't going to be talking about fancy calculators or spreadsheets and there's not that there's anything wrong with using those I definitely use those and we could talk about those in other videos but I heard a quote and I want you to guess who this is by that really impacted me pretty early on and said if you need to use a computer or a calculator to make the calculation you shouldn't buy it I'll give you a hint probably probably the best investor of all times all right you guessed it we're in Buffett so Warren Buffett multi billionaire investor said if you don't you need to use a calculator computer to make the calculation you shouldn't buy it now why is that because a good deal in his opinion and I found it to be the same thing if you should be able to approximately calculate the numbers and if it jumps off the paper and says wow this is a good deal the numbers look really good then you move forward if you have to get so precise and calculate it with to the nth degree to the third decimal place you've trying too hard to figure out it's a good deal it should it should look like a good deal with approximate numbers and that's what I'm going to share with you today we're gonna go over some formulas and these are good formulas that you can use but you can be approximately right with the calculations you don't think it's super fancy with the math and we're gonna look at a deal from several different different angles and as you can remember these and calculate them over time and you can use whatever scrap of paper you have to do the analysis you can do this while you're in a car looking at a property you can do it when you're back at your desk wherever you happen to be this is a tool or a toolbox that you can use to analyze a deal and know if it's a good one or not before we jump into the formulas I want to take a step back and talk about what the job of these rental properties you're gonna be analyzing actually is so the job with a capital J meaning why in the world are you buying around property in the first place what is it going to accomplish and I would put forward that for most of us you know you're watching my channel so hopefully you are interested in financial independence you're interested in maybe building wealth if you're just getting started or trying to grow your wealth but eventually you're also interested in living off of income so you want to use real estate in some form or fashion these rental properties you're buying to actually accomplish some of these goals and so the key question when you're analyzing a deal to keep in mind the reason I'm taking a step back here is that those are your goals how are you going to accomplish that how are you going to do it that's really what analyzing a deal is telling you and so you want to always keep that in mind keep that big picture in mind and at least in my opinion if you boil down analyzing deals and analyzing rental properties it kind of comes down to two different ways they're basically going to make you money one of those is a rental property can produce income so you collect rent you pay your expenses and what's left over is income to you so that's number one number two is that you can use the rental property to build equity and if you look at that in another way it's that you've heard the old expression buy low sell high so essentially you're making money on the price of the property either by buying it low right now or doing something to the property to make the price go up or it's letting the price go up over time so in all cases you're either using the income to put in your pocket to put your bank account to pay down a loan or you're using the equity to build up over time and then eventually sell the property or refinance it but really these are the engines that are going to help you accomplish your financial goals so I just want to remind you that all the formulas that we're going to look at here in this video are essentially helping you measure how good a property is at either one of those and you're going to want to set your own goals in both cases for these formulas and I want you to look at these formulas it's sort of like if let's say you were analyzing a property in my in to see if the property needs repairs and you're gonna fix it up when you're going to looking at property you don't just look at the property from the front of the house do you you also walk inside the you look at the bedroom you look at the bathrooms you walk around the back of the house you crawl under the crawlspace or go in the basement and that's essentially what we're doing here we're gonna look at each deal from a bunch of different angles not if you just take one of those by themselves if you just use a cap rate or just use it 1% rule just use buying low and a certain price you know that by itself is not enough so that's what I'm gonna try to share with you is my approach that's back-of-the-envelope approach to how do you analyze income and how do you let analyze equity all right I'm gonna start by explaining some approaches to analyzing the income of a rental property so we're gonna go over something called the gross rent multiplier the cap rate the net income after financing and a cash on cash return right now we're gonna start with the gross rent multiplier sometimes called the G RM if you're brand-new to analyzing rental properties gross doesn't mean disgusting it means the total rent so here's how this works you use this kind of tool to roughly look and this is often used on when you're analyzing a market not necessarily a specific rental property but I'll show you how to apply this to a rental property but you would look at the total price or maybe the average price on a market and then you would divide that by the total annual rent so let me give you an example of that let's say you found a property that is worth or that has a value of 144,000 and then you you were able to look on Zillow or talk to your rental property person and you were able to figure out that it had $1,000 per month rent which on an annual basis you want to convert that to an annual number it's twelve thousand dollars so you just apply this formula you say 144 thousand divided by twelve thousand and I kept my math really simple on this one is twelve so you to say that it has a gross rent multiplier of twelve how does that help you that helps you in comparison to other properties so let's say you had another property that was worth three hundred thousand dollars and you were able to analyze that one and figure it out that the rent was twelve hundred fifty dollars per month so that means it had a fifteen thousand dollar annual so yearly rent is that the gross rent multiple on that is 20 so the value of this kind of thing is comparing one property to another or more are more commonly one market to another and so a Grossman lower engrossment multipliers like 12 would be better so the lower the number the better the higher the number the less good this property is or this market is at producing income and so if you look at a market analysis often if you look at like San Francisco and some of the bigger markets you might have an average gross rent multiplier in the 30s or 40s whereas if you look at on the opposite of the spectrum some of the highest cash flow markets in the country like Detroit for example might have a Grossmont multiplier of 8 and then a lot of the healthier markets the ones you might want to be in could be anywhere from 10 to 20 and so that that's kind of the starting point of why you have used a gross rent multiplier but we're analyzing specific rental properties and so there's a specific application of this they don't want to talk about called the 1% rule but we take this gross rent multiplier and we and we apply it to a specific property and I'll go into that right now so the 1% rule is basically a rule of thumb or a shortcut and you typically use it when you're early on in the analysis of a property so for example your realtor sends you a bunch of listings and you just want to see is this approximately a good deal it's not gonna be something you buy a property based on I hope you're not you're gonna do some other nail analysis in addition to that let me tell you what it means basically it means that the monthly gross rent of that property if you want to meet the 1% rule the monthly gross rent should be equal to or greater than 1 percent of the total purchase price all right so let me show you an example of a property that would meet the 1% rule let's say something rents for $2,000 per month your realtor sends to you the deal and the property is listed for one hundred and ninety thousand dollars and it's in pretty good shape so the total purchase price also includes repairs by the way so it was a major fixer-upper and you need you to put $100,000 into the property that's not what we're talking about we're talking about your all end cost is going to be about ninety thousand is 2,000 greater or equal to one percent of one hundred ninety thousand so one percent it's always easy to figure out one percent cuz you just take the decimal place and you move it over to two times so 1900 would be one percent of one hundred ninety thousand and yes two thousand is greater than 1900 so it meets the one percent rule let's look at a property that does not meet the one percent rule let's say you have a property that rents for that same two thousand dollars but then you can you could buy it for $300,000 well one percent of three hundred thousand is three thousand dollars and so that's not it's actually less than so that one does not meet the one percent rule now why is this helpful this is remember similar to the gross rent multiplier that we're just looking at the monthly gross rent we're actually not looking at the expenses on the property and all that so that's why it's just a starting point but this is a really quick approximation you saw how fast I can do that you can be looking a lot of properties and screen them based on whether it met the one percent rule or not and I'll acknowledge and this is something we can go in more depth on another video about the one percent rule that not all properties and not all markets we're gonna easily meet the one percent rule and so you're gonna need to make a decision based on all these formulas that we look at does it need to meet the one percent rule for you to buy the deal or not can it be close could it be like the you know the point eight percent rule that meets your criteria but the fact is is this is a measurement of approximately how good a property is at producing rental income it is better than the one percent rule it's better at producing income it is not it's not gonna produce a lot of income so you better make some money and some other ways if it doesn't meet this rule once you've used the one percent rule of a gross rent multiplier to get an approximate maybe it kind of a pre-screening of the deal a much more in-depth and accurate analysis of the properties gonna be what's called a cap rate let me define the cap rate with a formula and then I'll explain a little bit more what it is and how you can use it so the cap rate formula is that you take the net operating income on an annual basis of the yearly net operating income I explain what that means in a second and you divide that by the total purchase price that's total again because it's not just a price that you see listed it needs to prepares you got to add some other things to it you want to include your total price for the property so let me explain what the net operating income is it's essentially when you take your gross rent that we we talked about in the last last part of the video and you subtract all of your operating expenses so this includes your management fees your taxes insurance maintenance all of those things and what's left over and you actually I just want to emphasize you're not taking out you your any kind of debt payment so no mortgage payment yet I'll explain why in a second but when you take your gross rent you subtract all your operating expenses you get what's called your noi your net operating income this is a really important number because if you think about it you know if you want to compare apples to apples like one property to another every property has a little bit different and debt a little bit interest rate somebody puts a different amount of down payment so to be able to compare two properties and see the ratio of how good a property is at producing income compared to the price that's really what this tells you I cap rate the way we're looking at now you can use cap rates in all sorts of different ways people use them for market analysis use them to compare you know a region of a market compared to another region or different types of properties but what I'm talking about here so you can use this as a goal to understand whether this property is good at producing income or not let me give you an example of how that might work so let's say a property produces ten thousand dollars and net operating income and you could buy the property for $100,000 all in you can pause this and do the math if you want to pretty simple math in this one ten thousand divided by one hundred thousand means the cap rate is 10 percent all right so let's look at another one now let's say that same property only produced five thousand dollars per year this is an annual basis remember net operating income divided by and you can pay the same price for it then your cap rate would be five percent so you've ever looked at return on investments or dividend rates or earnings rates and stocks for example it's a very similar concept here you're basically looking at what's that ratio what kind of turn could I get if I just paid all cash for it didn't have any debt on the property and I find it very useful because it always reminds me of the opportunity cost of what I'm doing investing this property when you start involving debt and down payments and cash on cash return something we're gonna talk about here in a second then it gets a little messy you can you can play some games with this but it's hard to play games when you look at how good a property is a producing income with a cap rate and you can compare that to other things like what if you could go get a bond you know like a Treasury bond or something which which basically has zero risk you know it's not a risk of default as passive you know I'm gonna do a lot of work like you are with a rental property and you could get that at 3% and you're buying a property that's also at 3% as a cap rate you know maybe you maybe you buy that property but I would really have to start wondering to myself I could buy a completely passive no risk Treasury bond for 3 percent and I'm buying this rental property for 3 percent I better have a really good reason to buy this rental property maybe I am maybe it's a great location and I'm feel very certain that it'll go up at 3 or 5 or 10 percent per year well that's it could happen it's a little bit speculative but you at least need to answer that question for yourself because the first and foremost the thing a rental property is there to do is prove income and that's what this measures it cap rate measures the ability to produce income now that but you might be saying but wait a minute Chad when I buy rental properties most of the time I do use a mortgage I do use debt so how is this relevant well it's just again it's just the first step is one way of looking at it and we have another formula that I want to share with you now that brings in the fact that you might use a mortgage and it helps you analyze the income from that standpoint so this additional formula called the net income after financing I see is it a really good complement to the cap rate I start with a cap rate I want to know without any debt how does this property do at producing income but then we often do use debt maybe you would to to buy a property and so you want to bring in the income after financing so here's the basic formula on how that would work you would take the net operating income which we talked about with cap rate but you can also see an additional video so it'll link above I have a video on how to calculate net operating income you take that number and you subtract your financing cost so for example let's say you calculated that your give a duplex and that duplex on a monthly basis produces $1200 per month and net operating income so $1200 per month and you figure out that your mortgage payment is $800 per month so that's going to be going out of your pocket to pay your mortgage so the difference between those two is just four hundred dollars per month and that's your net income after financing and you know really when it comes down to it this is one of the most important numbers because it basically tells you what you're gonna be putting in the bank of course there is some tech there are some tax implications which I'm not gonna get into this video it's a little bit more complicated but I will have some future videos to talk about net income after tax but this is a pretty rough estimation because you have a lot of tax benefits like depreciation and things like that help you shelter your income it's a pretty good estimate of how much you're gonna be putting in the bank four hundred dollars per month so some people use this as their primary goal they might look at a property and say okay it's got two doors it's a duplex that means that's two front doors two units and they might have a goal of having $200 per door and net income after financing so you could do that and then you could run the numbers and say if it doesn't have $200 per door then I'm not gonna not gonna do the property if it's a house and you want to make just make sure you have $200 in cash or net income after financing per month and you would just make sure that should go and you would just run the numbers you would do this analysis on a very basic net operating income estimate you would be able to run your estimate your financing cost which by the way is a little bit more another step to doing that you can go to an amortization calculator online and do this very simply by by just putting in the amount of the loan you're going to be borrowing the estimated interest rate and it'll tell you the the payments that you would have and you can go to the one that I like to use a lot of a link go to coach Carson comm forward slash and more to ization I spell that right so coach Carson comm four slash amortization that'll take you to a really when I'm used for years I have no affiliation with that but a calculator I like and it'll help you figure out you payment or your financing costs so that is the net income after financing and I'm going to talk about one more formula it has to do with income called the cash on cash return it's also very helpful to go along with this formula alright so this is the last of the formulas that I want to talk about with analyzing income for a property this is called a cash on cash return and this is one that I would use to compliment the cap rate and the net income after financing because it gives you an idea what kind of return you're getting on your down payment or the amount of cash you have invested if you use financing and so I just explained how to use net how to calculate net and come after financing so the for this one you just need to figure out how much cash you put into the property and I say down payment but it might be in addition to the down payment you make when you purchase a property might include any other cash you have for repairs or closing costs or things like that so you want to make sure you include everything but let me show you an example so we know the numbers we had from know from the last calculation last formula you have four hundred dollars per month and net income after financing so for a year that's just four forty four thousand eight hundred per year and let's say that you had a fifty thousand dollar down payment so remember I do really approximate math with these you don't to be exactly you know what if I looked at that without a calculator I would just say you know ten percent of fifty thousand it's five thousand there's a little bit less than that so it's around a 10 percent return a little bit less a little bit less than ten percent but a round a ten percent cash on cash return now why is this valuable this is valuable because you have to be disciplined with your cash so when you invest the cash in a property you lease just want to see how much of that cash am I getting back in year one that's really what this means it means based on the numbers I have I put fifty thousand bucks in I'm gonna get about ten percent of it back and so you can compare that to other investments that you have you could put it in the stock market and maybe you get an index fund that gets you two percent dividend rate and that kind of thing is important to you if the income return is important to you then that is a good measure of it the thing I'll say about cash on cash return that was kind of a tricky calculation because when you use leverage it can sometimes not be as important as some of the other ones like cap rate and net income after financing for example let's say you you've got a very small amount of cash flow and you got $100 per month or $1200 per year $1200 per year but then you had $1000 thousand dollar downpayment somehow you know you or maybe maybe even a you know you got a FHA loan and you put a really small downpayment had a good good price on it so you put three thousand down well all of a sudden you have this incredible cash on cash return this is all this is like greater than a 30 you know 33% cash on cash return and you might say wow that's incredible 33% but these are really small numbers 3,000 down 1,200 per year and what if you ended up getting three thousand dollars per year in cash flow you'd have a hundred percent return isn't that incredible and it's the best deal ever well maybe maybe not because you're magnifying your returns because you're using so much leverage using a high amount of leverage nothing wrong if that's a good deal for you and that makes sense but my point is this is why you look at a lot of different formulas you want to use a cap rate you want to use net income after financing and make sure that it works in multiple ways not just a cash on cash return but I do think it's a good one to bring into the mix as you try to have discipline for making sure you're actually getting a return on your cash all right so I spend a lot of time going over back-of-the-envelope formulas for analyzing the income of a rental property and I spend a lot of time because those are really the foundational pieces of an analysis you know we call it rental property for a reason because it produces rent that's one of the main reasons we buy it we can use that rent to put money in our bank account we can use that rent to pay the debt we can use that rent to to have it grow over time and make more rent but that the point is that income is very important but there are cases and the reason I want to give you another tool to also analyze along with those income formulas is that sometimes the income is not as good and might not be the main reason we buy a deal I like to get properties of produce both income and have some equity potential but especially in a hot market and some in some type of time to even within any market if you buy some of the higher quality properties you know it might not be a screamer of a deal just on your cap rate and net income after financing that sort of thing and so equity analysis is another thing that you need to understand and bring as a tool at your toolbox and let me first of all define what equity means it basically just means what you own the reason I have a balance sheet drawn here this is a really important concept to understand is it in any business and finance and investing you have the same thing you were you were basically buying assets so in our case is a rental property or a piece of property you can be buying a stock or a CD or whatever and it has a certain value so you could think about like this this this column here is the value of that property and to buy that property you often use debt so you have a liability and then the difference between your asset and your liability and that's actually the formula for figuring out your equity is assets minus liabilities equals the amount of equity you have in a property or you have in any other ownership of other things really your net worth that's when you calculate your net worth that's just the total of all of your assets altogether and you subtract all of your liabilities what's left over is your equity and in really in the end of the day that's the game we're playing we're trying to increase our equity and we're trying to get a larger net worth and that's how you built that's what wealth building is all about and when you get to a certain amount of wealth you can then retire off of it you can live off of it and have financial independence so that's why this is an important concept to understand and I want to mention when you're analyzing a deal there are four basic ways to increase the equity that you have in a property because when you start off you can think about a real simple example if you bought a property for $100,000 and you put $20,000 down you know you'd have an $80,000 loan or debt so in that case you're starting up you're putting $20,000 into the property right that is your original equity day one how can we make that getting bigger that's what we want to do and build wealth and so these are the four ways you can that the first thing you can do and I'm gonna say these first two are the most important when you're analyzing deals these say these third and fourth are important but I like to usually kind of have those after the fact those are kind of gravy in addition to what I'm making here at the beginning so the first thing you can do is you can buy a property at a discount so this is the whole buy low sell high so if you can because you're bringing cash to the property or you just find a situation where somebody just needs to unload it and sell it quickly it's not unreasonable you could get a 10% discount a 20% discount maybe even a 30 or percent or more discount this is not like stocks where you have millions of people trying to time buy properties or buy stocks you are one sell one buyer and then what you might talk to a seller where it makes sense or both of you to work together and to buy a property it might be because it's a bank and they just took it back and foreclosure and they don't want to do the work to maximize the value of this property might because somebody inherited the property and they're out of town might be another situation a divorce foreclosure and sometimes just life happens and people want to solve a problem could be a landlord who's just tired of the property but whatever reason it could happen and it's happened a lot for me that you can buy properties below its current value so you buy it at a discount and by doing that so you might buy a property for a hundred two hundred thousand dollars but the real value might be a hundred and twenty thousand dollars so you put twenty thousand down but you also have you have an additional twenty thousand dollars and equity so you just by negotiating just by by doing a good job asking and searching for properties you turn that twenty thousand into a total of forty thousand dollars that's pretty good right you're making money when you buy and so the way you can turn that into a analysis what do you how do you look at that you might say all right when I buy a property I want to make sure I get a least a 10% discount along with some of those other income formulas and maybe I have a two hundred dollar per month goal to make a net income after financing and I want to get a ten percent cash on cash return and I want to make sure I buy at least at a ten percent discount or maybe you want to be a little more aggressive you've been buying more properties and you're better at buying maybe you want a twenty percent discount so that would be a way you can analyze a deal by invited a discount but another way of looking at that and this is often where I find my best deals is it might not be on the surface you might not be buying it below its current value right away you might need to do something to it to force the appreciation so that the after repair value for it is is higher than the current value so a fixing up fixing up a property is the most common form of adding value to a property you go in there and you add an extra bedroom to the property because you turn a dining room into a bedroom and it costs you five thousand bucks but it increases the value of the property by twenty thousand bucks for example that would be a way of adding value if you buy multi-unit properties just by increasing the rent maybe to the market rates or decreasing expenses on the property you're adding value so the value after you do those repairs could be another way of increasing your equity you buy it for a hundred thousand bucks but you do something to it spend some money on it and you increase your equity so in both cases you're doing you're controlling the profit the amount of money you make on the property by increasing your equity so I like to use those to analyze deals these other two are also important so when you own a long term rental property if you can just pay the mortgage down over time and have give a 20 year loan and you're at least breaking even on that loan you're going to be building equity month by month by month by paying down your mortgage so it's definitely important I don't necessarily always calculate that upfront and this back of the envelope math but it is definitely something you can make money on as a rental property and then pass it appreciation you can make you very very wealthy by buying in the right locations and it's holding on I don't use that necessarily as a back-of-the-envelope analysis although it could be a big part of my long term wealth building plan because I want to buy a property that meets a certain goal income that maybe meets a certain goal with equity I buy it 10% below value or it's in a really good location really good property I might not need to get a discount at all as long as the income anything else works so this is how I use equity analysis to kind of complement the income of a property and be able to analyze a deal using back of an envelope or the back of a napkin or whatever the case might be all right I want to put everything together that we've talked about here but the income analysis and also the equity analysis and put it in a step-by-step approach that you can use today if you want to go out and analyze a rental property so the the first step really the pre step is that you need to set some goals for yourself so before you go and analyze idea you've got to know what you want remember that property has a job to do and so how is this job going to how is this probably going to do its job for you you can use multiple formulas that's typically what I do I use a cap rate I use a net income after financing and I usually use a discount to the value so I use a few different ones to look at that and you can also you if you want to get a cheat sheet that has all of these formulas in one place that you can face like carry around with you and use you sure to either look above in the video or in the show description and the video description below for an analysis cheat sheet and you'll be able to get that and download it for free and it's just a one-page PDF that will help you set some goals for what's important to you but once you have that you have this written down right and you go to step number one just go out and find a property you can find it maybe you found one on Zillow maybe someone sent you one maybe your realtor sent you a list but step one of course find the property to analyze number two is you want to gather some information so with the int from the income standpoint you need to gather information on the rent and the expenses to be able to calculate what some of these other formulas are and you can get approximate numbers to start off is you get into more detail and you're making an offer on a property you really want to check your assumptions to get even more detail but my thoughts are earlier in the process you are the more approximate you can get even to the point where remember we calculated the net operating income almost sometimes just use something like a 50% rule where I say you know what approximately 50% of the rent is going to go to expenses so I can figure out my net operating income really easily by just saying all right 50% of the RET equals certain amount that saves $1,000 and then 50% of that I would have $500 in expenses so I net operating income of $500 it's kind of small writing there sorry about that but my point here is you're gonna gather information on the rent and the expenses just approximately best you can so that you can then go to step number three and and create a snapshot that's an important term here because remember you're just doing this on a piece of paper on envelope you're just trying to get a snapshot like it just almost like you're taking a quick picture of this deal at this point in time and so the only thing you need to think about is you know which snapshot formulas you're going to use I like to use the one percent rule early on in the analysis I'm just kind of a first step of my income analysis I get past that then I like to do definitely these middle two the cap rate and the net income after financing sometimes I also run a cash on cash return and so that snapshot is you just have a piece of paper and you would have the formulas and the things that is talked about here and it took me you know a while to explain all these but it might take me two minutes to do these analysis maybe it takes me another few minutes to gather the rent and expenses if I'm not familiar with the area and then I put those on a piece of paper and it's had those sitting there next to each other that's what a snapshot means to me on that envelope the next thing I would do after doing the income analysis that's what I always do I then study some comparable sales so you want to look at what properties are selling for both in as is condition comparable to what you're looking at and maybe also an after repair value so that that's something your Realtor can also help you out with your property manager if you're not real familiar if you're brand-new but with that information I'm going to do a quick equity snapshot so I don't want to look at the current discount so am i buying it for a hundred thousand and it's worth one hundred and twenty thousand so I have a twenty thousand dollar discount from the full price or maybe more commonly you're buying it for a hundred and you got to do something to it to make it worth eight hundred and twenty thousand dollars maybe you got to spend five thousand bucks to get 120 thousand dollar increase so but in case I want to know that I'm getting some kind of discount to the full value either just by paying cash and closing quickly or by doing something in the property so that is the process that I go through and I do this all you know maybe you do use a little calculator on your on your phone to do some of the basic math or as you get more practice of this maybe you don't have to use a calculator at all but this is a great first step to analyzing a deal by the time you get done with this you should know is this really a good deal or is it not remember Warren Buffett's wisdom if you have to use a calculator or a spreadsheet to tell you that it's a good deal you probably shouldn't buy it when you get done with this you're gonna be either excited you're gonna be like yeah I'm not sure and yeah by all means bring in a spreadsheet especially the bigger the property is if you're doing a big multi-unit property with multi-million dollar you know kind of numbers and you're gonna say bring in partners and banks you're gonna need a spreadsheet but I'm willing to bet people if Warren Buffett can buy five billion dollar company investments we can buy some even a million-dollar multi-unit property and still do back of the envelope analysis is that closest I just want to remind you that if you want to get that analysis cheat sheet be sure to click it look in the show the description of the video below and you can get that cheat sheet and if you like this video like other you're gonna like other things that I have on the channel be sure to click that subscribe button so you don't miss anything in the future and share it with your friends a lot of the people know and leave a comment below let me know what you think about the video if you have any questions on analysis anything I can help you with is there anything that wasn't clear I made in the video I would love to hear from you on to everybody in the comments really appreciate you watching the video I look forward to seeing you next time

Channel: Coach Carson

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Keywords: rental property analysis, real estate investing, rental property investing, how to analyze rental property investment, how to analyze real estate deals, analyzing real estate investments, analyzing rental property calculator, analyzing rental property, investing in real estate, how to invest in real estate, bigger pockets, coach carson, rental properties, investing in real estate for beginners, rental property calculator, rental property, calculating numbers rental property

Id: ExFWAYXr11s

Length: 35min 10sec (2110 seconds)

Published: Fri Nov 15 2019