Updated almost 7 years ago on . Most recent reply
About to pull my hair out.
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Tons of deals out there. I've answer the 'how do I get deal flow' question enough times but even with loopnet/MLS you should find what you need to at least get some offers out there.
Analyzing a deal isn't rocket science, no complex calculator needed. You have one main source of income (rent). which you can gather from rent roll or comps (look at like properties on apartments.com or HAR.
So there, you're half way. Now expense: Loan (go to your fav caculator, figure out what a loan on 80% LTV would be), Property tax (hcad), management (ask your co, should be ~6%), insurance (talk to brokers to get a good $ per coverage, then est based on loan amount I use a $.70 rate for my est, utilities (pretty standard, based on all bills paid or not).
So in 5 min you have your income and 80% of your costs. Rest are repairs (I just toss in a small $/door/month depending on how bad the property is) and a few misc items. But you'll know if the property is workable or not.
If the property sells for more than 100x monthly rents, you can skip all that as you won't make $ (unless A or NNN). I'm at the point where iif I see it brings in $x/month I know what I can offer, then I normalize based on lot size, area, comps to make sure I have exits. Some of that comes with time.
Maybe I should wrote a book. My friends ask me this same stuff constantly.