How I Analyze a Rental Property (in-depth video from Brandon!)

Real Estate Deal Analysis & Advice
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How I Analyze a Rental Property (in-depth video from Brandon!)

Brandon TurnerPro Member
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes

Hey folks, 

A triplex came on the MLS today piqued my interest, so I decided to analyze it. Then I thought... maybe I should record my thoughts out loud to share with the BiggerPockets audience. Maybe that'll help folks?

So... I did :)

Enjoy! (And if you like the video, be sure to click to go to the actual YouTube page and give it a "Thumbs Up" on the YouTube player!)

(click the gear on the bottom right corner to change the video quality settings to HD)

What do you think? Would you buy it? What price would make it "awesome" to you?

Podcast Guest on Show #92
182Reply
252 views

Most Popular Reply

Candace Ellison
Property Manager · Murfreesboro, TN · Member since 2015 · 85 posts · 48 votes
10y

Awesome! Definitely going pro so I can have access to this.

12Reply
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88 Replies

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  • Candace Ellison
    Property Manager · Murfreesboro, TN · Member since 2015 · 85 posts · 48 votes
    10y

    Awesome! Definitely going pro so I can have access to this.

    12Reply
  • Rob Rice
    Wholesaler · Douglasville, GA · Member since 2014 · 72 posts · 63 votes
    10y

    Great Info...

    Keep it coming..

    1Reply
  • Meghan McCallum
    Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
    10y

    These tools have made me DEALS. If you want to be a Pro you have to go PRO. These tools save you so much time, headache, and impress loan officers!!!

    5Reply
  • Account Closed
    Real Estate Investor · Lutz, FL · Member since 2013 · 5 posts · 4 votes
    10y

    Are you able analyze this income potential as "live in 1BR 1 BA" and in law suite with 4 bedrooms 2 baths please ? Or connect me to share in private https://www.youtube.com/watch?v=6d4D36rI8es

    4Reply
  • Jimmy Chin
    Software Engineer · Houston, TX · Member since 2015 · 30 posts · 17 votes
    10y

    @Brandon Turner After working out the numbers and before you place an offer, do you recommend visiting the property first? It's very difficult (and near impossible) for investors that have a full time job to be able to visit multiple properties per day just so they can make multiple offers per day. I know some people are adamant that you absolutely have to go to a showing but if I had to do that, then that means I would be offering on a whole lot less properties which in turn reduces the chances that I would be able to get a good deal off the MLS.

    12Reply
  • Warren Bright
    Cape Town, Western Cape · Member since 2015 · 61 posts · 13 votes
    10y

    What a helpful tool, thanks @Brandon Turner

    0Reply
  • Michael Lenahan
    Rental Property Investor · Philadelphia, PA · Member since 2015 · 95 posts · 53 votes
    10y

    Brandon, thanks for posting. Awesome info.

    If you buy and repair property with all cash then do a cash out refi, how does the refi factor into the analysis?  I'm assuming you plug the refinance info into the mortgage section?

    -Mike

    6Reply
  • Mike H.
    Investor · Nashville, TN · Member since 2015 · 15 posts · 3 votes
    10y

    Thanks for the info...and makes me think more about going pro.

    0Reply
  • Ingrid J.
    Investor · Tromsø, Norway (Europe) · Member since 2015 · 431 posts · 194 votes
    10y

    @Brandon Turner Love it! It's great for a newbie to see the spesifics when analyzing a deal.

    2Reply
  • Ben Leybovich
    Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
    10y

    Well, that's one way to do it...another Waldo...lol

    4Reply
  • Cashmere Robinson
    Wholesaler · Bronx, NY · Member since 2015 · 46 posts · 11 votes
    10y

    Full of information. Great video. Can I embed it in my website? Stuff like this is a great tool.

    0Reply
  • Umar JavaidPro Member
    BiggerPockets Support · São Paulo, São Paulo · Member since 2015 · 548 posts · 79 votes
    10y

    Hi @Cashmere Robinson Thank you for liking the stuff. And yes, you are most welcome to embed the video :) 

    BiggerPockets
    3Reply
  • Lynn Maher
    West Chicago, IL · Member since 2014 · 39 posts · 4 votes
    10y

    Thank you! Very helpful. I analyzed 11 properties just last night after watching the video. I've analyzed some before but this helped explain how to "read" the numbers. 

    I'm off to look at properties!

    1Reply
  • Chris Gerbig
    Investor · Ocean View, DE · Member since 2015 · 11 posts · 1 vote
    10y

    love it!  thank you for the straight forward walk through

    0Reply
  • Kyle Grimm
    Investor · St. Louis Mo · Member since 2015 · 211 posts · 129 votes
    10y

    Wow this video was awesome!  Please upload more just like this!  

    0Reply
  • Brandon TurnerPro Member
    OP
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    10y

    Hey @Jimmy Chin - good question. So, maybe. I mean, if the pictures are super clear or you have a good way of knowing what the condition is like, maybe. Sometimes my agent will simply tell me the condition if he's been in the house and I'll base my offer on that. Of course, I'll always add an inspection contingency in the mix so I can back out of I find the property is far worse than I estimated.  Or, you could also hire someone for fairly cheap (a local handyman perhaps) to do all your initial walk-throughs. Finally, I typically will analyze quite a few deals before finding one that excites me enough to go look at it in person. However, when that happens, I'll make the time needed (I also work a full-time job, here at BP, technically.) Lunch time, evenings, whatever. I usually look at a few houses a month in person. This deal, though, where the numbers don't make sense without a massive discount, I won't even look at in person until I get closer to the right number.

    @Account Closed - rock on! Thanks for that! :) Mind if I share that testimonial in the future!? :)

    Podcast Guest on Show #92
    1Reply
  • Jerhmey Cobb
    Miami Lakes, FL · Member since 2015 · 15 posts · 8 votes
    10y

    Great video @Brandon Turner ! I think you just sold me on upgrading to BP Pro! and for that I thank you!

    1Reply
  • Mikael Winkler
    Rental Property Investor · Columbus, OH · Member since 2015 · 344 posts · 258 votes
    10y

    Great post! I'm a newbie, so the walkthrough was extremely helpful. @Brandon Turner, would you typically modify this analysis in any way if you were planning to house hack the property? Perhaps not look to be cashflowing as much? Obviously, you'd want to cashflow if possible, but getting the mortgage covered is like cashflowing, in a sense. Correct?

    0Reply
  • Jason McColly
    Investor · Austin, TX · Member since 2015 · 5 posts · 1 vote
    10y

    Great video, @Brandon Turner! As a newbie investor it was nice to see the process of analyzing the numbers and letting them speak (objectively) for themselves, rather than allowing emotions and excitement to cloud judgment. I look forward to more videos like this in the future.

    0Reply
  • Lee Jackson
    Peterborough , Ontario · Member since 2015 · 111 posts · 15 votes
    10y

    Great stuff!

    0Reply
  • Sam Valme
    Rental Property Investor · Arlington, VA · Member since 2015 · 160 posts · 53 votes
    10y

    @Brandon Turner, this is exactly what I was looking for! I've started using the tool but there were some sections I wasn't sure about. You talking through it made it extremely easy to identify what I should and shouldn't worry about! Keep up the amazing work my friend!

    0Reply
  • George Pfeiffer
    Investor · Hialeah, FL · Member since 2015 · 1 post · 1 vote
    10y

    Thanks Brandon!  I learn more and more from you everyday, of which I am sooooo appreciative!

    1Reply
  • Andy Plattner
    Teacher, Business owner · Port Isabel, TX · Member since 2015 · 26 posts · 7 votes
    10y

    Hi Brandon,

    Thanks a bunch. I am looking a calculator and looking at the numbers, it is better to try to include any repair/upgrade cost in the loan. I did talk to the mort broker and he is having no problem including some of the upgrade cost in the loan. Using the calculator, I am showing a much better ROI vs not including the upgrades in the loan.

    0Reply
  • Kalen Jordan
    Austin · Member since 2015 · 149 posts · 80 votes
    10y
    Good stuff Brandon Turner - thanks for this. It would be slick if you added a little slider widget to the purchase price on the results page so that people could easily adjust it and see the updated cash flow numbers without having to manually go back and re-enter in the form.
    4Reply
  • Robby B.
    Real Estate Investor · Golden, CO · Member since 2015 · 8 posts · 3 votes
    10y

    Excellent video Brandon!  It really is helpful to see a practical application/real world scenario on how to use this calculator.  Your discussion of assumptions was helpful as well.

    1Reply
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