BP rental property calculator

5 Replies

Hello everyone,

I am a beginner and my goal is to invest in rental properties and create a steady longterm cashflow. Just for the heck of my knowledge, from past couple weeks I have been analysing properties that are listed on realtor.com and zillow.com using BP rental property calculator. And, every property i analysed is a negative cashflowing property. I have been analysing 5 properties everyday from past two weeks but none of them a positively cashfowing. I want to ask you guys if anyone of you is using BP rental calculator and what do you guys think about it? Thanks in advance.

@Dawal Limbachia i use the BP calculator for in depth analysis of properties. Every property you analyse there will be a number that if  the property sold will result in positive cash flow. i use quick analysis to see if I want to run numbers on the calculator. Use the 1% rule. If rents are $1200 per month then max purchase price to cash flow will be $120000. Since you haven't posted an analysis it is hard to know what you are using for expenses. Around the $1000 per month mark I use 23% for vacancy,repairs,and capex. 

I take it you are looking to invest in Chicago? Find a investor in that area and ask them to look at your numbers. You need to make sure you know what vacancy, capex, management, etc goes for in that market. Also finding cashflowing properties on the mls these days is VERY HARD. I find one per every hundred or so and they are gone within 1 hour in my market. When you run numbers if its an investment you like work the purchase price down to something that does cashflow for you and make an offer based off that. If they entertain it cool, if not so what. Deals in 2019 are made not found. STAY TRUE TO THE NUMBERS.

Originally posted by @Dawal Limbachia :

Hello everyone,

I am a beginner and my goal is to invest in rental properties and create a steady longterm cashflow. Just for the heck of my knowledge, from past couple weeks I have been analysing properties that are listed on realtor.com and zillow.com using BP rental property calculator. And, every property i analysed is a negative cashflowing property. I have been analysing 5 properties everyday from past two weeks but none of them a positively cashfowing. I want to ask you guys if anyone of you is using BP rental calculator and what do you guys think about it? Thanks in advance.

What type of properties and what locations?  If you're looking at the A class neighborhoods in the city of Chicago, you're going to find a lot of properties that don't cash flow.