How to Analyze a Rental Property (From Start to Finish)

How to Analyze a Rental Property (From Start to Finish)

Get unlimited access to the Rental Property Calculator by signing up for BiggerPockets Pro with code “YTDEALS24”: https://www.biggerpockets.com/membership-types?utm_source=owned_media

Looking for your first investment property? This is where to start! Today, we’re walking through how to analyze an investment property step-by-step. And we’re not just going through the regular “rent – mortgage payment – expenses = cash flow” numbers; we’re going to go even deeper, helping you analyze real estate markets, too, so you can buy the best property in the best market imaginable. Ready to start? In just thirty minutes, you’ll learn how to analyze a rental property like a pro.

We picked a random rental property in a traditionally cash-flowing real estate market: Des Moines, Iowa. Whether you have an interest in investing in the Midwest or not, this step-by-step real estate analysis will show you how to know whether a rental property is worth buying no matter WHERE you invest or how much money you have to spend. Plus, we’ll show you how to MAKE a deal when the numbers aren’t what you’re looking for!

~~~~
Join BiggerPockets for FREE 👇
https://www.biggerpockets.com/signup?utm_source=owned_media
~~~~
Find an Investor-Friendly Agent in Your Area:
http://biggerpockets.com/agentmatch
~~~~
Find Investor-Friendly Lenders:
http://biggerpockets.com/findlenders
~~~~
BiggerPockets Tools Mentioned in Today’s Video:
Rental Property Calculator: https://www.biggerpockets.com/rental-property-calculator?utm_source=owned_media
Rent Estimator: https://www.biggerpockets.com/insights/property-searches/new?utm_source=owned_media
~~~~
Grab Dave’s Books:
Real Estate by the Numbers: https://store.biggerpockets.com/products/real-estate-by-the-numbers?utm_source=youtube&utm_medium=description&utm_campaign=none
Start with Strategy: https://store.biggerpockets.com/products/start-with-strategy?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Check Out More Episodes of “The Data Show”:
https://youtube.com/playlist?list=PLgSUZKLPRI9vHmKt2TaUkBMBxW_3QHCPh&si=cY6GmWluKUUC2-Ex
~~~~
Hear Dave on The “On the Market” Podcast:
https://link.chtbl.com/OTM
~~~~
Watch Dave on the “On The Market” YouTube Channel:
https://www.youtube.com/channel/UCxDXuLvtjJ9Est8PrG3i2VA
~~~~
Data From This Video:
FRED: https://fred.stlouisfed.org/
Redfin: https://www.redfin.com/news/data-center/
~~~~
Connect with Dave:
BiggerPockets: https://www.biggerpockets.com/users/davem27?utm_source=youtube&utm_medium=description&utm_campaign=none
Instagram: @thedatadeli or https://www.instagram.com/thedatadeli/

FRED® Graphs Federal Reserve Bank of St. Louis. 2022. All rights reserved. All FRED® Graphs appear courtesy of Federal Reserve Bank of St. Louis.

00:00 How to Analyze a Rental Property
02:55 Is Now a Good Time to Invest?
04:00 The 3 Steps
07:39 Real Rental Property Example
09:14 1. Macroeconomic Conditions
12:01 2. Local Market Conditions
15:54 3. Running the Numbers
26:04 MAKE It A Deal!
32:21 Easy Analysis Tools


Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top