How to Analyze a Rental Property (Fast, Easy, & Accurate!)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 16 June 2025

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

Struggling to tell a cash cow from a money pit? Is the thought of a critical misstep keeping you from deal analysis altogether? Not anymore! We’re going to show you exactly how to analyze a rental property from scratch. Whether you’re looking to buy your first rental property or sharpen your skills, you won’t want to miss this episode! Welcome back to the Real Estate Rookie podcast! Today, Ashley and Tony are breaking down the entire process of analyzing rentals, step by step. First, you’ll need to pin down your investing goals and buy box. Then, we’ll show you which real estate metrics actually matter when crunching the numbers and how to find each of them. We’ll also equip you with several tools and resources that will do the heavy lifting for you, allowing you to analyze deals faster and find that first deal MUCH sooner! Whatever your investing strategy—house hacking, flipping, or short-term rentals—this process will give you the confidence to make savvy investing decisions going forward. Stick around till the end for a challenge that will give you hands-on deal analysis experience and an exclusive giveaway that could fast-track your investing journey! In This Episode We Cover How to analyze a rental property, step by step (even as a complete beginner) The crucial first step you need to take before analyzing any real estate deals The hidden rental property expenses that could derail your investment Which deal analysis metrics matter most (and the fastest ways to find them) Dangerous pitfalls to avoid when estimating a property’s rental income And So Much More! Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/rookie-574 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠[email protected]⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	You found a property that might be a deal.
0:03.1	But how do you know for sure?
0:04.8	Analyzing rental isn't just plugging in numbers into a calculator.
0:08.0	It's about knowing which numbers matter and where to actually find them.
0:12.5	And if you skip this step or get it wrong, you could end up with a money pitch instead of a cash flowing rental.
0:17.8	And today, we're walking you through the exact process we use to analyze
0:21.9	properties before we ever even make an offer.
0:29.9	Welcome to the Real Estate Rookie Podcast. I'm Ashley Care. And I'm Tony J. Robinson. And today,
0:36.3	like we said, we're giving you the kind of soup to nuts,
0:39.6	soup to nuts, bolts to nuts, A to Z, all those things of analyzing rental properties today, what's
0:46.0	working. And what Ash and I do is we're looking at deals for our own portfolio. You need to
0:50.0	have some kind of buy box for your property. you need to know which metric is going to be
0:57.0	aligned with your investment goals because Tony could say, I have a great deal right here.
1:04.4	And I could say I have a great deal right here. And they could be totally different outcomes,
1:10.1	totally different analysis. And so the first thing
1:15.3	you need to do is figure out what are your investment goals? Is it cash flow? Is it appreciation?
1:22.5	Is it long-term wealth? Is it to get a chunk of capital up front? Do you want to do the birth strategy?
1:30.4	Do you want to do a short-term rental? Do you want to do a turnkey rental? So that's really the
1:35.6	first step of it is figuring out what you want out of that property. So when you're analyzing it,
1:41.5	you kind of have a target of what you're trying to achieve with analyzing the property.
1:46.3	Yeah, I couldn't agree more.
1:47.2	I think so many people jump into the idea of investing in real estate without first getting absolute clarity on why they're looking to do this in the first place.
	...

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