How do you analyze each deal? (Buy and hold rental)

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@Kornkot Dechanukul yes I trust the info on the MLS but no data is going to be 100% up to date. Frankly I go more by my gut feel than data. Baltimore can change block by block so data for a neighborhood may not apply to the block you are buying on. However it is no secret, you only need to drive from one block to the next to see if it is similar or a big change. You mentioned a car in front of every house. Yes that is one indicator of a decent neighborhood; people can afford cars. Also look at the landscaping, are there overgrown weeds everywhere or is everything neatly maintained. Finding tenants has not been a problem for us. If you are in a decent neighborhood you should be able to get tenants.

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@Kornkot Dechanukul I just bought my first rental last month and just got my first rent payment on the 1st. I am in escrow with the second rental now. So time will tell if I made the right choices. I spent about 6 months learning everything I could about the area I wanted to invest in. I subscribed to an email version of the local paper(I invested out of state in the KC area) . I had several conversations with friends and family in the area. And I would often check on homes for rent in the area. This gave me an idea of what was available, how many rentals were available, and what the competition was like. All the signs of growth were there. Businesses were hiring, a new hotel and conference center were built, etc. Then I calculated everything and was very conservative with my estimations. Math is math but you have to be realistic when inputting your expenses. The numbers made sense. I was patient and passed on a couple of houses and then stumbled on to my first property via a family friend. It was an off market home and had been a rental for several years. The owners were in their 80’s and had decided they didn’t want to be land lords anymore. It was nicer and cheaper than anything else I had looked at up to that point so I bought it. There are several videos on BP about analyzing a deal and of course there’s the BP calculator. Good luck to you

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Forget the fancy formulas, the expensive programs and useless classes to determine potential good deals. If the deal doesn’t CASH flow or EQUITY, forget it- move on. You don’t find great deals, you make them.

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@Kornkot Dechanukul I agree with @Ned Carey when he says go with your gut. You’re data looks good but data alone can be misleading. I also believe talking to a property manager is a great idea. In fact talk to a couple of different property management companies. A property manager will give you insight as to what the rental market is really like. Here’s the link the the video for analyzing rental properties.https://youtu.be/T_7vhsSBi7c

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@Kornkot Dechanukul. Check out the Property Analyzer under the Tools section on Bigger Pockets. I think you can use it 7 times for free or unlimited if and when you upgrade to a Pro account.

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Account Closed All these area that i'm looking at right now are all cash flow but will someone rent it. That's my question. Do you have any good potential property listing in your pocket?

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@Caleb Heimsoth I will add those in my analysis. Thank you

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@Ned Carey That's very helpful. I almost buy one home that seem to be good in data and numbers but in a lots of boarded up home neighborhood. Thank you.

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@Kornkot Dechanukul. I start with brought rules (mainly 1 or 2 percent rule) and then go from there. What’s the marker value, what can I get it for? How much deferred maintenance? Can rented go up? Can I decrease taxes? Find a value add and over time it becomes pretty straight forward

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You do know what to look for. Is a street with well manicured lawns and flowers a good street? Is a street with overgrown lawns, half torn down fences, gutters falling off with lots of boarded up properties a great street? Within a neighborhood you will see subtle and not so subtle clues as to what blocks are better. You are not going to learn the whole city in a few weeks. I am investing in what I described above, neighborhoods that are in the $100-150 range.