Taking Brandon's Analyze 1 Deal a Day Challenge- Advice Needed

Taking Brandon's Analyze 1 Deal a Day Challenge- Advice Needed

Investor · Nashville, TN · Member since 2017 · 31 posts · 5 votes

Hi BP Family- so I have been consuming BP podcasts and reading forums and wanting to put some things into practice as I continue educating myself.  I have 1 rental already and have flipped 1 property so just enough to know that I need to learn more!  I am also a real estate agent but 95% or more of the people I work with are typical home buyers and sellers- not investors.  I can analyze a typical deal pretty easily but want to make sure I can proficiently analyze deals more like an investor as well.  So, I am taking Brandon's 90 day challenge and analyzing 1 new investment deal a day!!  

I am going to do this for different areas of town so that I can get to know some that I don't typically work in but that I believe I need to focus on more as an investor.  I will be calling people i know that specialize in those area, doing online research, driving through the neighborhoods and really treating each as a potential deal I want to move forward with (and who knows- hopefully I will on a few).  

What I wanted to ask, is what should I specifically be looking for as I analyze these that is more investor (Flip and/or BRRR/Rental) oriented than when I analyze for my friends and family that are buying/selling their personal residences?? I have quite a few things on my checklist but really want to make sure I am not missing anything. Thank you all so much for your help!

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  • Real Estate Agent · Chicago, IL · Member since 2015 · 238 posts · 101 votes
    8y

    @Kelly Kormos Hi and Welcome to BP! It sounds like you already have your answer. Whatever is on your checklist is what you should be checking for. Decide what numbers would make you think this investment is a good risk to take. The main difference between how you look at personal residences and investment properties is whether or not that property will make you money! Make sure you look at property taxes, monthly debt payments (if you use any debt to get into this deal), utilities that you can't pass on to the renter (water, common areas, etc). From there I would suggest at least 25% of gross rental to be set aside to cover a combination of property management (even if you self manage now), short term/day to day repairs and cap-ex. The previous expenses are basically a given on any deal. Additionally, make sure you account for any other expenses that may apply to your specific rental; for example any HOA's or pest control services. Basically, account for EVERYTHING that's going to take money out of your pocket and make sure you save some healthy reserves for any unexpected items that may pop up in the future. Good luck!

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