Calculating Numbers on a Rental Property (In 20 Mins or Less!)

When house sale prices skyrocketed, landlords jacked up the rent prices. When sale prices go down, will landlords lower rent?

Great breakdown here. I invest specifically in multifamily and first do quick “back of the napkin” underwriting to see if the deal is worth diving deeper into. I’ll take gross income, multiply by 45% (conservative expense ratio) then divide that by my market cap rate to get a purchase price. If the seller’s asking price is in the same ball park, that tells me based on the numbers that the seller is not being unrealistic.

Wonderful explanation

What great timing. I was just watch an older video on this same content. I’m glad it’s now updated info! Thanks for reading my mind. 😉

Very helpful awsome. More content like this

Your property taxes were input as $156 annually. Was this suppose to be monthly? Because on the surface a deal with rent less than 1% of purchase price with interest rates today should be near 0 or even negative cash flow.

I was just quoted a 30 year rate of 7.625! 810 credit score with income above 150k and no debt other than house and a heloc. Hard to find cash flow with that rate

Having a strong investment narrative alongside some robust numbers - you’re gonna have a good time

The most popular video on the channel is "Calculating numbers for rental property." I understand the objective is show people how easy it is but you don't need to rush through the process and feel like it has to be condensed to 20 minutes. Viewers such as myself are new and would like to understand all of the details. With that said, thank you for the video!

Does biggerpockets do their own backround analysis on the property you enter and move in for the kill? Lol

Bigger pockets is one hell of a community 💪🏾Brandon Turner is honestly a Real Estate legend

How much does it cost per month to get access to these Bigger pocket tools

What do you mean by the seller may “buy down your rate”? Please elaborate on those real estate terms you use

Now where are you getting the cash to buy these properties, sounds good but reality is not that many people have cash AND can get a loan, Maybe one loan but several oans its going to be stretch. Please elaborate on where the cash comes from...20-25% on each deal....????

Investment rates are definitely not at 6.8% .
More at 8% with 2 points

Thank you for the breakdown of this essential information.

Something older investors need to take into consideration (and really anyone for that matter) Is what are the current terms of the lease and any immediate reno needs. Example: There was a duplex next to a duplex we own that was impeccably maintained, both kitchens recently redone, new roof 8yrs ago, excellent long term renters. Wife and I always said we would tender an offer if it ever came up for sale. When that happened in the summer of 2022 interest rates jumped from 4% in the spring to 6+% (round numbers). We knew what markets rents would bring for this unit. The listing said both leases were up at 3 mo and 4mo away. We were excited and about to put in an offer when we found out 2 important pieces of info. First, leases weren't actually up for 15mo and 16mo (I believe listing agent fudged that info) and the current landlord never raised rents for 17yrs on either unit! Yes, that's correct, putting the total rents close to $2k behind market and creating a serious negative cash flow. We are retired but always looking to expand our holdings with the right opportunity but taking a huge financial hit for that long didn't make sense for us. Ultimately it sold with a younger owner occupied couple. Moral of the story... double check the accuracy of those claimed numbers!

Great book, great structure and level of details, answered for me a ton of questions on what, when, how much and should I... totally recommended, especially for free!

Excellent breakdown. I definitely will be bookmarking this video.

Has anyone found a site to get quick home insurance quotes? I know the quick quotes are not 100% perfect, but I'm looking a quicker way instead of having to call an insurance agency everytime. Tried the Hippo site, a waste of 10 mins lol

Really appreciate just seeing what tools are used for this. Thanks!

Where did you get the red lines for the charts in the beginning?

I’d would’ve liked to see a more in depth method for checking rents other than the BP rent estimator. Every time I use it it’s not even close to accurate. But really great video regardless.