Greetings from St. Petersburg, FL

[Samuel Garnatz]

Hope that everyone had a great Thanksgiving holiday and wanted to make a quick introduction! My wife and I are in the process of looking for our first investment property and look forward to networking with the BP community. To get things started was curious from those that have already taken the leap as to what type of secondary analysis you all are doing when you find a potential property? We are frequent users of the Rental Property Calculator and have found a few promising leads thus far but also know that is just the beginning of the process. Thanks in advance for any insight you all might be able to provide!

[Jorge Vazquez]

Hey Samuel, welcome to the BP community! When analyzing properties, it's helpful to run a rental stress test to see if the deal can withstand unexpected challenges. Assume a couple of months of vacancy, consider potential unexpected repairs (like HVAC or plumbing issues), and test the numbers with rents dropping by 10-15%. If you're using financing, evaluate how a rate hike could affect your payments. The goal is to ensure that the property remains viable even if circumstances change, like dealing with a non-paying tenant or a market downturn. If it holds up under these conditions, you've got a solid investment—better safe than sorry!