Rental Performance Proforma

18 Essential Metrics to a Complete Real Estate Investment Analysis

When it comes to analyzing the potential of an income producing property, most people focus on Cash on Cash return as the only measure of their real estate return on investment. However, to get a complete picture of the return of your real estate investments, there is an array of metrics that you should include as part of your rental property analysis. While initially overwhelming, in this post I’ll break down each metric, provide the formula to calculate it, and show you examples, using a real-life advertised deal. In addition, I’ll also go into how these figures and ratios relate to each other. The total picture you get from preparing… Read More

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7 House Flipping Mistakes to Avoid Header

7 House Flipping Mistakes To Avoid When First Starting Out

There are several mistakes that I consistently see new (and even experienced) real estate investors make when first venturing into house flipping.  These mistakes are understandable when the excitement to get started conflicts with the knowledge required to execute a house flipping project quickly, cheaply, and profitably. In this article I list the seven major house flipping mistakes that new real estate investors are likely to make when first starting, and how to avoid them in the first place.   Mistake #1: Buying Too High When a new investor wants to start flipping, they turn to the first place they know to find properties: the market.  These are properties listed… Read More

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Frustrated Real Estate Investor

Why Are Your Real Estate Investment Offers Always Getting Rejected?

Despite carefully following the most commonly used rules of thumb in real estate investment, new investors eager to get their first deal under contract, nearly always find their offers immediately rejected. They frequently experience the following scenario play out: I follow all of the rules of thumb, make sure I’m conservative with my numbers, and end up with an offer that’s way below listing price….and this is the 10th one that has been rejected. or My MAO says that using the 70% rule, I should offer X which is less than half the listing price, and my realtor won’t even submit the offer.   So what do these frustrated investors end… Read More

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BRRRR Real Estate Investment Strategy

Real Estate Investment Strategies: Example BRRRR Analysis

In this video and post we are going to analyze a property that was recently advertised on BiggerPockets as a potential BRRRR real estate investment strategy candidate.   In order to perform the analysis, we will be going over: An Overview: What is BRRRR? The Potential Deal What is the 2% Rule? Gathering the Due Diligence Data Verify the After Repair Value (ARV) Identify the Rehab Costs Enter the Purchase, Sale, and Holding Costs Purchase Costs Sale Costs Operational Expenses (OpEx) Modeling BRRRR Financing: Buy, Rehab, Refinance Hard Money Purchase Loan for Purchase & Rehab FHA Conventional Refinance Rental Property Income Capital Expenditures (Reserves) Itemizing CapEx How Does CapEx Affect… Read More

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