Newbie - Analysis Tools - No/Low Cost

[Monica Gonzalez]

I'm looking to start with Multi-Family (duplex/triplex).  I have my own home so this will have be as an investor with 20% down. 

I know there are things I need to do to analyze if the deal is a good one, like rental rates, Status of the house/infrastructure, amenities in the area but what else should I be thinking of? Tools that I see to analyze deals: Zillow, rent websites, craigslist what other tools do you recommend? 

[Deandre Brown]

When analyzing deals, a few additional factors I like to consider are whether the electric and gas utilities are charged per unit or as a single expense. This helps determine if I would be responsible for covering those costs. I also review the insurance costs and try to get a solid estimate of coverage expenses to fine-tune my calculations. Another thing I do, which might just be a personal habit, is check Redfin or Zillow for property listings. By scrolling down, I can usually find the property taxes for previous years, giving me a rough estimate of those costs. These are some of the additional things i look for when analyzing. I hope this information is helpful.

[Monica Gonzalez]

@Deandre Brown Thank you for all those tips! These will definitely be helpful to consider especially the insurance in my area of SoCal where companies are leaving and prices are increasing. 

[Deandre Brown]

Quote from @Monica Gonzalez:

@Deandre Brown Thank you for all those tips! These will definitely be helpful to consider especially the insurance in my area of SoCal where companies are leaving and prices are increasing. 

Yes insurance is insane right now. But I'm glad i can help and I'm currently looking in (Texas) my market as well for a Single family and possibly multifamily. I would probably get a SFH as it is hard to find a multifamily in at least a C area. Do you use the BP calculator for you analysis?

[Monica Gonzalez]

@Deandre Brown I have not used it yet, but I'm anticipating trying it this weekend.  I don't have pro, so I'm not sure exactly how much detail it will show me. 

Where are most Multi's in Texas? Or do they have any? I've never been but the photos I see it's always Large newer homes or SFH on a large piece of land. Well, large compared to us.

[Deandre Brown]

Quote from @Monica Gonzalez:

@Deandre Brown I have not used it yet, but I'm anticipating trying it this weekend.  I don't have pro, so I'm not sure exactly how much detail it will show me. 

Where are most Multi's in Texas? Or do they have any? I've never been but the photos I see it's always Large newer homes or SFH on a large piece of land. Well, large compared to us.

Yes, absolutely! They provide detailed information on the property address, closing costs, all utilities, lawn care, capital expenditures, maintenance, property taxes, insurance, and more. I might be missing a few things, but they really give you a lot of info to put in. After inputting all the data, they provide a review that includes cash flow, Cash-on-Cash (CoC) ROI, and even a graph to estimate the property's growth through appreciation, yearly cash flow growth, and loan paydown. It's very well-organized, and I love using it.

[Deandre Brown]

Regarding multifamily properties, there are larger ones available, but in my market, the ones in better neighborhoods aren’t for sale just yet. The ones I’ve come across are in areas with boarded-up houses throughout the blocks, which I’m not quite ready to invest in as a new investor. I’m interested in value-add properties, but not to the extent where they’re in struggling neighborhoods, which is unfortunate because these areas are just blocks away from the major hospital.

[John Mason]

@Monica Gonzalez You can also try Dealcheck free version dealcheck.io

[Min Zhang]

Hi Monica, you can use tools like rentometer, rent cast or "price my rental" feature on Zillow. It will give you some insights on rental rates around the property. If you come across a property with tenants in-place, you might ask for a financial report if available. In that way, you will have an insight if the numbers make sense for you. You should also check BP Calculators. Hope this helps and good luck on your investing journey!

[Brandon Carlson]

Quote from @Monica Gonzalez:

I'm looking to start with Multi-Family (duplex/triplex).  I have my own home so this will have be as an investor with 20% down. 

I know there are things I need to do to analyze if the deal is a good one, like rental rates, Status of the house/infrastructure, amenities in the area but what else should I be thinking of? Tools that I see to analyze deals: Zillow, rent websites, craigslist what other tools do you recommend? 

 I would suggest learning how to analyze property. More than happy to share a spreadsheet with you!

[Nicolas Martin]

Quote from @Monica Gonzalez:

I'm looking to start with Multi-Family (duplex/triplex).  I have my own home so this will have be as an investor with 20% down. 

I know there are things I need to do to analyze if the deal is a good one, like rental rates, Status of the house/infrastructure, amenities in the area but what else should I be thinking of? Tools that I see to analyze deals: Zillow, rent websites, craigslist what other tools do you recommend? 

For a multi-family investment with 20% down, consider market trends, cash flow, cap rate, and local vacancy rates. Account for property management costs if you’re not managing it yourself and compare financing options.

Tools like Rentometer (rental rates), BiggerPockets Calculator (cash flow analysis), CoStar/LoopNet (market data), and PropStream (property details) can help you evaluate deals effectively.

[Drew Sygit]

@Monica Gonzalez owners rarely track Days On Market (DOM) trends and seasonal impacts. 

It's an important metric as it gives you an idea of how long it may take you to fill a vacancy. 

[Devin Conley]

Hey @Monica Gonzalez -- all great questions. Are there any specific cities you are considering? Happy to put together a market comparison report for you.

[Mike Arias]

Quote from @John Mason:

@Monica Gonzalez You can also try Dealcheck free version dealcheck.io

This! Dealcheck is awesome. I use the free version but eventually will get the Pro.  It will help you analyze deals quickly but you will likely need to adjust some of the figures such as rent, % towards vacancy/cap ex/maintenance.  

[Tim Ryan]

Those are all good resources you mentioned. Perhaps the next one is - a Mentor. Being new to this can be risky.

[Cory King]

@Monica Gonzalez a paid memership to BP will unlock their tools/calculators. Call agents/property managers in the area you're looking to invest in for real time stats like rent and pricing info. 

You should be weighing out your tolerance for risk. Local market economic conditions. How much $ do you want to spend? Do you want to buy fixer uppers or more stable assets? What's your end goal for your investing journey?

What @Tim Ryan said. A mentor. Connect on here and go to local investor meetups. 

[Mitchell Gunlock]

I like sift.homes free email

[Scott Scialabba]

Quote from @Deandre Brown:

When analyzing deals, a few additional factors I like to consider are whether the electric and gas utilities are charged per unit or as a single expense. This helps determine if I would be responsible for covering those costs. I also review the insurance costs and try to get a solid estimate of coverage expenses to fine-tune my calculations. Another thing I do, which might just be a personal habit, is check Redfin or Zillow for property listings. By scrolling down, I can usually find the property taxes for previous years, giving me a rough estimate of those costs. These are some of the additional things i look for when analyzing. I hope this information is helpful.

 Do you use the historical selling prices to inform your offer? For example, if the listing is selling for 200% of the last purchase of two years ago with no improvements, etc.?

[Scott Scialabba]

Quote from @Brandon Carlson:

Quote from @Monica Gonzalez:

I'm looking to start with Multi-Family (duplex/triplex).  I have my own home so this will have be as an investor with 20% down. 

I know there are things I need to do to analyze if the deal is a good one, like rental rates, Status of the house/infrastructure, amenities in the area but what else should I be thinking of? Tools that I see to analyze deals: Zillow, rent websites, craigslist what other tools do you recommend? 

 I would suggest learning how to analyze property. More than happy to share a spreadsheet with you!

 I'd love a copy of this spreadsheet if you don't mind! :-D

[Mitchell Gunlock]

Quote from @Scott Scialabba:

Quote from @Brandon Carlson:

Quote from @Monica Gonzalez:

I'm looking to start with Multi-Family (duplex/triplex).  I have my own home so this will have be as an investor with 20% down. 

I know there are things I need to do to analyze if the deal is a good one, like rental rates, Status of the house/infrastructure, amenities in the area but what else should I be thinking of? Tools that I see to analyze deals: Zillow, rent websites, craigslist what other tools do you recommend? 

 I would suggest learning how to analyze property. More than happy to share a spreadsheet with you!

 I'd love a copy of this spreadsheet if you don't mind! :-D

 @Brandon Carlson ditto thank you

[Scott Scialabba]

Quote from @Mitchell Gunlock:

I like sift.homes free email

 Is this a link?

[Scott Scialabba]

Quote from @Mitchell Gunlock:

Quote from @Scott Scialabba:

Quote from @Mitchell Gunlock:

I like sift.homes free email

 Is this a link?

Whoop the link I put above looks wrong. Lets try www.sift.homes

 It worked this time! Thanks Mitchell

[Nate Jenks]

Quote from @Brandon Carlson:

Quote from @Monica Gonzalez:

I'm looking to start with Multi-Family (duplex/triplex).  I have my own home so this will have be as an investor with 20% down. 

I know there are things I need to do to analyze if the deal is a good one, like rental rates, Status of the house/infrastructure, amenities in the area but what else should I be thinking of? Tools that I see to analyze deals: Zillow, rent websites, craigslist what other tools do you recommend? 

 I would suggest learning how to analyze property. More than happy to share a spreadsheet with you!

 Hi Brandon, I am also learning to analyze properties. I would also love a copy of the spreadsheet. Thank you!

[Nicholas L.]

@Monica Gonzalez

tools are OK but what you need is a network of humans.  then you can ask those humans things.  so you can get a rough idea of what something might rent for from the tools, but then if you know an experienced PM or agent, you can say "my property is different in these ways, how much do you think that's going to impact rent?" or "most properties don't seem to allow pets, but i plan to allow them, so how much do you think we can bump the rent for that?"

if there's a market you're considering investing in, you should go there in person, walk around, go to meetups, take people out for coffee and ask them questions.  Zillow and other tools just aren't going to get you very far.

hope this helps