This video will show you how to analyze a rental property without fancy calculators or spreadsheets. In fact, the formulas you’ll learn can be done on the back of an envelope, napkin, or any scrap of paper you can find!
Chad “Coach” Carson has used this “back-of-the-envelope” approach during 17+ years of buying investment properties. And it’s also the basic approach used by famous investor Warren Buffett to make multi-BILLION dollar purchases of large companies.
FREE Rental Analysis Cheat Sheet with formulas from the video: https://coachcarson.com/rentalcheatsheet
NEXT VIDEO:
How to Calculate Internal Rate of Return (IRR) for Real Estate Investing
Timestamps:
0:00 – Coach’s Intro
0:58 – Why the best deals don’t need a calculator
2:42 – The job of rentals and your financial goals
5:42 – The Gross Rent Multiplier
8:23 – The 1% Rule
11:10 – Cap Rate
15:31 – Net Income After Financing
18:31 – Cash on Cash Return
22:01 – Why Equity is important
24:50 – 4 Ways to build Equity and wealth
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????RENTAL PROPERTY ANALYSIS COURSE????️
My online course teaches EXACTLY how I run the numbers and confidently analyze rental properties that produce cash flow and build wealth (includes my spreadsheet): https://www.coachcarson.com/RPA-LT
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– Deal Machine – software to help you buy more real estate deals – https://www.coachcarson.com/dealmachine-YT
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▶️ MY YOUTUBE PLAYLISTS:
“GET STARTED in Real Estate Investing”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2GSa4B55DgpGOXFwhqMcCAm
“100 Year Old Triplex Remodel Vlog”:
“Ask Coach Your Questions Series”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2Fns-a91jl5nU05fnej07Wp
“Rental Property Analysis”:
“Creative Financing ToolBox”:
“NITTY GRITTY Real Estate Investing”:
“BE YOUR BEST (Productivity Hacks & Personal Growth)”
“HACK Real Estate Debt”
https://www.youtube.com/playlist?list=PL5F-I4oW-y2G8M605b1iuXpj-xWyjqNXP
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► Music Credit:
Springtime Stroll by Secret Crates
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: https://youtu.be/2Q3rZ9VeXt4
This was a good video. I learned alot. I have always wondered how other people figure things out and think the figures.????Thanks.
So if you have to use the back of an envelope, it's not a good deal? Says Warren Buffett.
Nevermind, you answered my question about taxes. You said you wouldn't talk about taxes in this video.
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.
3 month Tbills are paying 4.8%. Now
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?
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?
This video is Gem for me .
It can be to the point and brief.
First three minutes is dude telling us what he's going to do. Just do it, already.
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!
Great info . Thanks.
Concepts are sound, but the numbers are in no way based on reality.
Thank you.
⚠ NIAF vs. CASHFLOW — what's the difference?
this is a gem ???? video! wow
Stuff like this does not get taught in school.. At least not any school i've ever been to. Thank you.
Rental income is less than the interest on a CD nowadays. That does not include fees you pay to mgmt company and any cost of fixing the property (I.e. water leak, roof leak, broken faucets, stove or refrigerator or AC or water heater are down.) You only make money if the property appreciate and that you sell it. Renters tend to break things, punch holes in walls dirty up the carpets, all of which owner have to fix before renting the property out to another renter…. Nope, I rather put my money elsewhere.
No teaching ability, no Charisma, and has a face for radio.