A Few Quick Questions on Analysis

[Nate Wentworth]

Hi everyone,

I'm trying to learn to identify deals and analyze them, but I'm having some issues:

• What CapEx assumptions do you prefer to use and how do you determine that figure (based on age, size, etc. of property)?
• How do you identify investment properties from images online? I understand that visiting and touring the property with a contractor or inspector would be the best way to ge a full picture of what you're dealing with, but how do you determine that it's even worth your time to get under contract and to that point?

Thank you all in advance!

[Aaron K.]

Question 1. It is an educated guess at best, and there are not hard and fast numbers, I just add onto repairs and maintenance for analysis.  There are a few things that are a bit more predictable such as Comp roofs.

Question 2. You will see a property listed below the ARV then you look at the pictures and evaluate. There are some properties where nothing needs fixing, and in this case you would just move on to the next one. However if you see one or more major issues it will probably be worth it to investigate further.