Analyzing Rental Deals
Hi everyone. I'm new to real estate investing and I'm in the learning phase (reading books, research, etc). I plan to make my first purchase in 1-2 years in the Kent County, Delaware area, which seems to be somewhat booming with all the out of staters moving here from up north but still not too expensive yet.
I have been reading some of Brandon Turner's books and of course he mentions how to analyze deals. This seems like one of the more difficult parts of the entire process.
I was wondering how everyone else out there is doing this day to day? Any tips/quick ways I can be taught to quickly analyze deals?
Thanks!
Tom
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#2 Out of State Investing Contributor
- Flipper/Rehabber
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#2 Out of State Investing Contributor
- Flipper/Rehabber
- Pittsburgh
hello. learning to analyze deals is fine. what you will likely find is that nearly every on-market deal will not work as a profitable investment at its listed price. everyone wants top dollar - no one is looking to help a new investor get a great deal.
the market is exceptionally challenging for new investors right now. this really cannot be overstated. prices and rates are high, there is incredible demand for good inventory, and the best properties get snapped up by both retail buyers and investors sometimes in hours. so it's very tough.
a few actions you can take.
1. go to meetups. or if you can't find any, start your own. the goal here is to find other local investors.
2. talk to some local property managers.
3. read these threads. these are by SUCCESSFUL INVESTORS. and they aren't sugarcoating or cheerleading - they're being honest about the challenges of the market.
Welp that's it, I'm selling out
I can't be the only one that's had a change of heart about rentals