Analyzing single family Brrrr

[Ethan Teuscher]

Hey Guys,

How do you analyze deals? Any good articles on how to properly analyze Brrrr/buy and hold deals? Anything will help. Thanks

[Alyssa Weber]

@Ethan Teuscher I definitely use the Bigger Pockets calculators for analyzing deals. I also sometimes use a website called DealCheck just to run it again and back-check my numbers on Bigger Pockets.

For a buy and hold deal, I often do a "day 1" analysis and a "future" analysis. This will allow me to see what the cash flow will be on day 1, which would be the existing rents and expenses on the property. The future report then can show my goals of raising rents, lowering my expenses, etc. I do this to make sure that I am ok with the cashflow (or lack thereof) on day 1, and also to give me a picture of my goals for where I could take that particular property.

When starting out, it is good to jump in and analyze a few deals per day, so you can start to have an understanding of what looks like a good deal when they come along. I use rentometer.com to estimate rents, and typically try to look for listings that post the expenses. If expenses are not posted, I will estimate based on prior experience, or the seller's real estate agent can provide you the real expenses if you (or your agent) reach out to them. Things like owner-paid utilities can totally bust a deal, so watch out for those!

Good luck!