In this video, I'm going to analyze a single family house rental property so that by the end of the video,

you'll be able to confidently analyze a rental for yourself.

And don't worry if you're intimidated by math or spreadsheets.

I'm going to make it super easy to understand.

I'm going to draw it out.

And if you stick around to the end, I'm also going to give you a free spreadsheet that anyone can use to analyze rental properties.

Let's get started.

If we haven't met yet, my name is Chad Carson.

You can also call me Coach Carson,

and I've been investing in real estate for over 21 years.

I also wrote the book,

The Small and Mighty Real Estate Investor,

published by Bigger Pockets. And this is a channel all about helping you get out of the financial grind so you can do more of what matters. Now, I'm going to jump right in and show you a real single family house that sold not too long ago for $150,000, $400 in the small town of Central South Carolina, which is located in the upstate of South Carolina right next to Clemson, South Carolina, where I live and invest. Now, I'm going to run the numbers on this property in two different ways. The first is known as a back of the envelope analysis, which a lot of experienced investors use just to quickly tell if a deal is good or not. And you can literally write it on the back of an envelope, the back of a napkin, whatever you have, to know approximately whether this deal has promise, has it something you wanna spend your time on or not. And then if that looks promising, you dig into a deeper analysis where you use a spreadsheet to prepare to make an offer and actually commit to buying the property. Now in both cases, whether I'm doing a higher level or in more detailed analysis, I want to look at three things. You can think about these as ingredients of a good deal. Number one, I want to make sure I like the location. Number two, I want to look at the property itself, including the lot that is sitting on. And then number three, I want to run the numbers. Does it make sense? And while I'll be able to make a profit on this property. And when you first get a lead, you're going to get something like this Zillow listing here, or maybe you get an MLS listing from your real estate agent. But what I typically do, I'm just doing the surface level, quick and dirty analysis, is just look at the property to try to see the pictures, try to look at the details of the bedrooms and baths, a description of the property maybe from the real estate agent or the person who's selling it. And I'm really just trying to quickly see, does this meet my buy box or not? If you don't know what a buy box means, I've got a link to another video I did where I went in detail on describing what my own buybox is. But in essence, you're just describing ahead of time. Before you go out looking for properties, this is what a good deal looks like. Here's the size of the property. Here's the location. Here's the price range of what I'm looking for. This is such an important step because if you just say, I want a good deal and I'll just take any good deal. I don't care what type of property it is, what location. That's not going to be the most effective way. You need to focus in ahead of time and that buy box eliminates a lot of other properties you don't want to look at so that you can identify when something comes across your desk like this you can say oh this property is three bedrooms too bad a single family house it's in a location I like you look at the pictures just to make sure there's nothing you know crazy wrong with it that kind of quick analysis you're okay this looks interesting I'm going to move on what I look at first, I remember the three ingredients is I started to look at the location. And so I like to look at the Google Maps, just simply look at the Google Maps. And you can look at location in a couple different ways. I've talked a lot about this here on the channel. I like to zoom out, like literally Google Maps zoom out. And in my case, this town central is right next to Clemson, but you really do an analysis of why you are investing in this location in general.

From a higher level, a regional level, I like this metaphor of you're looking for like

a sun and then planet satellites around the sun.

And so the sun is where's the economic center? Where's all the

energy, the gravity of why people are going to live there? People need jobs. They need income.

They need a reason to live in a place. And I'll just give you a description of my own location.

So Clemson, South Carolina, central is this little town right next to it. I live in Clemson.

But Greenville, South Carolina, and the upstate is really the

son of the area. It's the economic center. It has a really nice park downtown. BMW is a big

manufacturer. We have Michelin. We have a lot of tourism in the upstate. It's really become a

...