Hello! What resources should I use when analyzing rental property deals? I don't currently own property but want to make sure that I have fully vetted a deal out before making a decision. I am familiar with the 1% rule but in also realize that is more or less a rule of thumb. Any and all feedback is appreciated. Thanks.
You should try out the Bigger Pockets calculator first for analyzing properties. Remember though, garbage in, garbage out.
If you want the best results, you need to make sure your numbers are complete. Don't forget repairs, capex, and management costs.
@Calvin Wellington you should definitely use the BP calculator. It's important to analyze properties over and over again to help train yourself to understand a good deal. Find properties that look promising and practice analyzing them, even if you don't intend to buy. It won't take long for you to train your brain to recognize a good deal quickly and then you'll only need the calculator for your final analysis to cross-check your work.
BP has a lot of videos that will train you on how to analyze. You start by looking at every property on the market (or in the area you want to focus on) and then narrow your search down like a funnel. For example, you may only want to invest in a 3bed/2bath home that's zoned for vacation rentals. That will eliminate 80% of the potential rentals on the market so you're not wasting your time. Then let's say you only want homes that are less than 20 years old. Again, that narrows your market some more. Continue this process until you get down to a manageable number and then start to analyse in detail.
Thank you both!
Ken Mcelroys "ABC's of real estate investing" helped me immensely in actually analyzing deals. Hope the suggestion helps.