I found a rental property on Zillow and I asked AI if it was a good deal.

At first, the answer sounded pretty reasonable, but then I noticed something that completely changed the numbers. And it made me realize why relying on AI alone can get you into trouble. So here's what I'm going to do. I'm going to analyze this deal starting with the way most people use AI. And then I'm going to show you what it got right and also where it can get you into trouble. And by the end, you'll see exactly how I use AI

as part of my own decision-making process.

All right, let's start with some details about the deal.

This is a multifamily property in Clemson, South Carolina, which is my hometown market, and it was originally listed for over $400,000. If you go by what Zillow says, it estimates the rent at $1,100 per month. Now, if you've analyzed a few rentals before, just that rental number should raise some questions because $1,100 per month for a four-unit building will be about $250 per unit.

But instead of digging in any further, let's do what a lot of people are doing now, and let's just ask AI.

All right, I'm going to use chat GPT for this, and I'm basically just going to paste the listing from Zillow and also the price and the rent estimate from Zillow.

And then I'm going to ask, is this a good deal? Let's see what it says.

So I have to say that I was genuinely surprised and impressed with the response from chat GPT.

I was impressed because I gave it a very simple prompt.

I didn't give it my goals or my criteria.

I just said, is this a good deal? And I also

started fresh. I didn't use my normal account where I always analyze rental properties and have

memory of that. This was just from the very beginning, a simple prompt. And it did a pretty good job.

I would give it an a minus just from the beginning on analysis. And it pointed out right off the bat

that this property actually sold for $345,000. So I mentioned that it was listed in the high 400s or the low 400s, but it did sell for a lower price. I'm going to get back to that later to let you know whether I actually think that was a good price or not. It actually caught one of the early mistakes that Zillow had. Zillow had an estimate of $1,150 in rent per month, and it saw in the listing for the

property, the actual rent was much higher. It was 2,770, which is more reasonable for this price of a

property. And it gave a breakdown of what each per unit rent was. So that's very helpful because

then it leads to you being able to run the cash flow, the income analysis numbers.

And this was very similar to what I do. So the AI's approach to breaking down this deal was I like with my back of the envelope videos when I show how to analyze a rental property,

I like to get into both the rent and like the ratio of the rent to the price and also the after expense rent,

which is called the net operating income. And that's exactly what chat GPT did. It figured out

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