Analyzing property as new investor

[Moaaz Malik]

As I’m just getting started in real estate. What exactly does it mean to continuously run the numbers on a deal and analyze?

What are some steps you take when looking at a property to see if it’s a good investment or not?

Is it as simple as looking at sales prices of the homes nearby and also what houses in that area rent for?

Im trying to think of an efficient way to analyze deals but I’ve never analyzed a deal and I’m unsure of everything I should be looking at.

[Daniel Jensen]

@Moaaz Malik

I think there are a lot of factors that go into this, to start I would do the following:

1) search for "analyzing real estate deals" on youtube, bigger pockets channels has many videos on deal analysis

2) find a target market, again, Youtube or Google is your friend here. But if you want to get started just pick a town or city.

3) narrow down your search criteria for what type of properties you want to invest in. Maybe start with single family house or a duplex. You can get really deep on your criteria which in my opinion is going to help you learn how to analyze faster as it drives focus.

4) go to Zillow, realtor.com or similar, find properties that match your criteria run the numbers for at least 5 properties a day. Over time you will be able to do this in a few minutes.

5) you should start seeing patterns, now change your criteria and try to run the numbers in your same market and notice the difference. You will find things like, properties in the north of your market may not have great cash flow while properties in the south do etc... Or maybe single family homes have terrible cash flow but duplexes cash flow better.