Running numbers on properties

[Jonathan Bell]

How exactly do you run numbers on a property, and is running numbers different from a wholesale and a long term rental, or any other type of investment in general? Could anyone offer an example possibly?

[Joel B.]

Howdy,

Great question. Head to Youtube for two good videos to get you started. I'm including links below.

Calculating Numbers on a Rental Property [Using The Four Square Method!] - YouTube
How To Analyze A Rental Property (The Quick & Dirty Way) - YouTube

Wholesaling is the process of buying a property for a low price, adding a small fee to that, and then reselling it for that higher price. For example, let's say you find a run-down house that you can buy for $50k. After it's fixed (called the After Repair Value or ARV), it would sell for $100k. You know it needs about $20k-$30k worth of work, so the all in price to get it turned around would be $70k to $80k. If you don't want to do the work yourself and make a quick buck, you buy the property for $50k, and then sell it to someone who will do the fixup work for, say $55k. You never actually own the property or do any work, but you make $5k on the deal because you found it and sold it to someone who wanted to do the work.

Brandon's videos give you the details on a long-term rental.

Hope this helps. Blessings!