Analysis and Return-on-Investment

[Jonathan Hardy]

Hi Everyone,

I'm curious to hear how many of you are analyzing potential properties. What figures have you found to be the best indicators of a potentially good investment, and why? 

Thanks!

Jon

[Jon Reed]

@Jonathan Hardy

Most of the information you need can be pulled from public records, mortgage calculators, and some just 'rough' estimates.

I assume an 8% expense rate, an 8% cap ex rate, and a 10% management exp for properties when I am just doing the first round of figures. 

You will get the rent roll and expenses of a property after you have it under contract. Just make sure you write into the contract that the offer is dependent on the review of those documents. I have only done BRRR so I never care about any of that because I will be gutting the place anyways.

With that info you are good to go on running your numbers!