Rental Property Analysis in 2024: Find Cash Flow Even w/High Interest Rates

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 28 August 2024

⏱️ 41 minutes

🔗️ Recording | iTunes | RSS

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Summary

Deal analysis is an essential tool in the investor’s toolkit and maybe the most crucial skill for breaking into real estate investing. Have you ever wondered how other investors can find a rental property, run the numbers, and buy with confidence? Well, you’re in luck because we’re dedicating an entire episode to this vital skill! Welcome back to the Real Estate Rookie podcast! Today, Ashley and Tony are going to show you how to analyze real estate deals like a pro investor. First, you’ll need to determine your “why” for investing and choose your investing strategy. But after that, we’ll dive right into the most important factors to consider when breaking down a deal. Interest rates are a sticking point for many investors, and today’s high rates keep many of them on the sidelines. But we’ll share why this is a HUGE mistake and why your rate shouldn’t stop you from snatching up a great deal. We’ll also discuss two types of properties that cash flow and how to find them, as well as how you can gain a competitive edge in your market by adjusting your buy box to include the properties other buyers are overlooking. Don’t go anywhere because we’ll even address some of the biggest mistakes we see rookies making—pitfalls that could hold you back from landing a home-run deal! In This Episode We Cover: The two things to pin down before you start analyzing properties Two types of properties to buy if you’re investing for cash flow Why you shouldn’t stop buying deals just because interest rates are higher The most important factors to weigh for real estate investment analysis The cash-flow-killing costs investors neglect when running the numbers How to gain a competitive edge in your market by tweaking your buy box Why you must niche down to neighborhoods when choosing where to invest And So Much More! Links from the Show Ashley's BiggerPockets Profile Tony's BiggerPokckets Profile Join BiggerPockets for FREE Buy the Book “Real Estate by the Numbers” Find an Investor-Friendly Agent in Your Area See Ashley and Tony at BPCON2024 in Cancun! Introduction to Real Estate Investment Analysis (00:00) Intro (00:46) Deals Gone Wrong! (06:02) Finding Your “Why” & Strategy (09:12) Investing for Cash Flow (15:56) Do Interest Rates Matter? (21:29) Interest Rate Strategies (28:29) Other KEY Factors (32:35) Biggest Analysis Mistakes Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-450 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	Analyzing properties accurately is one of the most vital, if not the most vital, part of breaking into real estate investing.
0:08.5	Today, Tony and I are going to outline the top things you need to keep in mind when analyzing your first or
0:14.4	next property. This is the real estate rookie podcast. I'm Ashley Kerr and I'm here
0:20.3	with Tony J Robinson. And this is the podcast where every week,
0:24.4	three times a week, we'll bring you
0:25.6	the inspiration, motivation, and stories
0:27.6	you need to hear.
0:28.6	To kick start your investment journey, now,
0:30.1	we want your next property to be a home run. So today we're going to discuss why you shouldn't
0:35.7	only chase cash flow, how to correctly do your market research, and the top mistakes that
0:41.4	rookies make when analyzing properties so you don't do the same.
0:44.8	All right, Ash, let's get into it for today.
0:46.8	So before we kind of get into the nitty girdy of today's episode, Tony, what is a deal early on that you analyze that was either a home run or there's a
0:58.0	major learning curve analyzing the deal? So we got to pour salt on some old wounds right now.
1:04.0	I think for a lot of long time listeners at the podcast.
1:07.8	They probably remember all of my exploits in the city of Shreveport, Louisiana.
1:12.3	And I'll share two deals really quickly,
1:13.7	because I think both illustrate what we're trying to do here.
1:17.6	But the very first deal that I did,
1:19.8	it was a Burr deal in the city of Shreveport Louisiana and it was a very very solid
1:26.0	you know base hit it was a perfect burr and nobody was left in the deal I put in my property management company. It was a
1:33.8	good rehab. We had good tenants and I was cash for you know maybe 200 bucks a month
	...

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