Quick Method to dismiss or look into rental property

[Tony Wallis]

I am looking for input on methods being used to quickly qualify or disqualify properties. Spending a lot of time running numbers and wanted input from the community on what key metrics are being used to evaluate a property quickly so it either gets a deeper dive or it is scratched from the list.  

[Tony Wallis]

@mikeealy

[Tony Wallis]

Thanks to everyone for the diversified and really helpful responses! This is an amazing community for sure! 

[Nicklaus Schmele]

@Michael Ealy

Could you send me that spreadsheet? Thanks.

[Charlie Cepeda]

@Michael Ealy

Hi Michael,

Could please be emailed your spread sheet as well?

Thank you.

[Kory Sheldahl]

@Michael Ealy

I like the look of your analyzer. I can’t see some of the detail. Wondering if you wouldn’t mind sharing it.

Thank you,

-Kory

[Jim Klimt]

@Michael Ealy

Michael,

Good morning. If you are willing, I’d appreciate you sharing your property evaluation spreadsheet with me.

Thanking you in advance.

Jim

[Anthony Barone]

@Michael Ealy

I like that you include condition age of the property.

How do you use that in your cost analysis?

I understand the common sense part. Older the building.. More capex cost.

Do you use (ABCDEF) for just keeping track of how old it is?

[EMarie Windham]

@Michael Ealy can you send me your analyzer as well?

[Nicholas U.]

@Michael Ealy can you send me your analyzer as well?  Thanks!

[Michele King]

@Michael Ealy I would love a copy of your deal analyzer. Thanks

[Richard Akomeah]

@Michael Ealy please can you send me your deal analyzer

[Michael Ealy]

Originally posted by @Anthony Barone:

@Michael Ealy

I like that you include condition age of the property.

How do you use that in your cost analysis?

I understand the common sense part. Older the building.. More capex cost.

Do you use (ABCDEF) for just keeping track of how old it is?

 The older the building, the higher is the operating expenses. The age of the building or when it was last renovated is key in determining how old it is.

[Ravi Potu]

@Michael Ealy can you please send deal analyzer link to my inbox.

Thanks in advance.

[Michael Ealy]

Originally posted by @Ravi Potu:

@Michael Ealy can you please send deal analyzer link to my inbox.

Thanks in advance.

 Ravi, I just sent it to you. Let me know what you think.

[Ravi Potu]

@Michael Ealy Thanks a lot

[Axel Ragnarsson]

Some quick thoughts on analyzing rental properties in NH (assuming your goal is achieving cash flow, if it is not, then disregard):

- If you are putting 25% down, 90% of single-family properties and condos are not going to cash flow any amount that justifies doing the deal and spending your time on it. To drill down further, you'd need to be under $175k throughout most of the state.

- Follow the 1% rule when it comes to small multifamily properties (2-4 units). If a property doesn't meet that metric, it likely won't cash flow. If it exceeds that and creeps into the 1.2% - 1.5%, it's probably worth a longer look. 

Key issues with investing in New Hampshire are high property taxes, high maintenance costs due to older housing inventory, and a competitive marketplace (no surprise there, though). These typically make single-family rental property investing unfeasible if you're goal is cash flow.

[Marlen Weber]

@Satyam Mistry These are great. Thank you for sharing these ways of quickly analysis deals and running numbers. 

[Kay Kay Singh]

@Tony Wallis if it does not qualify the 1% rule then pack and run.

[Matt J.]

@Tony Wallis Know your market and you’ll know what’s a deal and what isn’t.

[Corey Chonsky]

@Tony Wallis, I agree with @Kenneth Garrett. Don’t short change the process. You need to learn your investment area and figure out what works. A lot of what people mentioned are thumb rules and will not work in all instances. Analyze a bunch of properties in the area you want to invest in and you will be able to answer your question for your area.