How to Analyze a Rental Property for Profits
In this episode, Scott Dillingham discusses how to analyze a rental property to determine if it is a good investment. He emphasizes the importance of setting a target cashflow per month per door and using that as a basis for analyzing properties. He provides a rental worksheet that helps calculate the cashflow and net operating income of a property. Scott also advises on the importance of doing due diligence, including verifying the legality of units and accurately calculating expenses. He recommends checking the landlord's rent roll and bank statements to ensure the accuracy of rental income and expenses. Lastly, he suggests speaking to neighbours to gather information about the property and tenants before making a purchase.
Takeaways
- (00:00) - Introduction
- (01:02) - Analyzing Rental Properties
- (04:53) - Verifying Legal Units
- (05:22) - Considering Vacancy Rates
- (10:23) - Calculating Net Operating Income
- (12:17) - Understanding Cap Rates
If you're serious about real estate investing, join our free Investors Hub. Click this link to access now.
Takeaways
- Set a target cashflow per month per door to guide your property analysis
- Use a rental worksheet to accurately calculate cashflow and net operating income
- Do thorough due diligence, including verifying the legality of units and accurately calculating expenses
- Check the landlord's rent roll and bank statements to ensure the accuracy of rental income and expenses
- Speak to neighbours to gather information about the property and tenants before making a purchase
If you're looking to access the best financing for Real Estate Investors in Canada & the U.S.A., then I suggest you Book A Free Strategy Call with a specialist on my team.