Acquiring Accurate Numbers to Analyze Deals

2 Replies

Hey guys! After listening to the podcast and reading as many books as I can get my hands on, I'm taking Brandon and Josh's advice (which is always awesome coming from them) to analyze deals in my area to get a sense of the market and what constitutes as a great deal. 

However, when I look at properties on sale there usually isn't enough information numbers-wise for me to accurately crunch the numbers. Obviously sales price and general info on the property is easily accessible, but I always have trouble calculating monthly expenses and mortgage rates. 

Should I just be calling companies in the area that provide the services I'd be using, as well as a mortgage broker, and get the quotes from them? 

If so, would they even want to talk to me seeing as though I don't have a property yet and am just calling to find out about prices? 

Any advice on how you guys get these numbers yourself would really be appreciated, thanks!

Hi @Jackson Miller - welcome to BP! Yes call a few banks to get ideas of terms to finance an investment property. Then use this as a basis for financing, and run the numbers yourself online with a mortgage calculator.

Then of other expenses, talk to other investors in your area, get a sense of what they spend managing properties. There are a lot of "rule of thumbs" you can use like budgeting 5-15% for Maintenance, and 5-15& for capex. But talking with other local investors will help and is why joining a local REIA can be really important.

@Andrew Kerr Thanks for the advice! The really helps a lot and answers my questions, I appreciate it!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.