Rental Property Investor · Tinley Park, IL · Member since 2017 · 6 posts · 4 votes
Hi BP Community,
I'm just starting to analyze deals and I want to get everyone's opinion on how they conduct their analysis. I've used the BP calculator, but being that I am a financial analyst in my day job, it's bugging me that I'm not really seeing what's going on under the hood. Do any of you use spreadsheets or it that too laborious?
Professional · Atlanta, GA · Member since 2017 · 116 posts · 67 votes
8y
@Account Closed
I use both depending on the strategy. 95% of my deals are a typical buy and hold and I can do those faster via a simple spreadsheet. I have not set the spreadsheets up to generate reports and graphs but just a quick plugin to see if a deal meets my financial criteria (cash on cash return, ROI, profit per door, etc.) If a deal passes the initial test, I can then use the calculator to generate a report for potential lenders.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
8y
If you're finding something to get under contract...... you should be able to do that in your head quickly, pretty basic criteria (the 1% or 2% rule for example). Once you make an offer, again little more thought but generally speaking you should of already tossed out a lot of properties that don't fit... so it should be pretty simple. I wouldn't waste my time making a complex model until you got something under contract. Something will ALWAYS come up during inspection you can reduce or adjust your numbers then or go in under what your est is and let them bid you up.
There's sheets on this site that even go into calc maintenance expenses down to items (roof, water heater etc based on anticipated life). But I'd save that for the ones you get under contract in conjunction w/ offer.
Investor · Pacific City, OR · Member since 2016 · 174 posts · 123 votes
8y
James Catuara I just created my own and have been evolving it over the years. It probably doesn’t look as pretty as the BP reports, but I just want to look at numbers and tweak them quickly based on different terms and expenses I’m comparing.