How to analyze rental properties and work there numbers?

[Jasraj Singh]

I am always a little bit confused about how to work numbers in rental properties. I've read a lot of BP blogs and articles and I now know a little bit about it. There are so many ways and formula's and things like ROI, Cap rate, COC, etc. I know what they are and how to calculate them But it's a little confusing, I don't know which one to use any when to use. I also don't know how to calculate vacancy, and how much rent should I offer to tenants like how much should I rent a unit for or how much cash flow is this property gonna produce. So I really need help on how to analyze numbers on rental's so that I can decide which is a good investment and which is a bad one and then invest wisely, so I really need to know the economics of income property?

[Nathan Gesner]

https://www.biggerpockets.com/blog/easily-analyzing-rental-properties-four-square-method

Brandon has a ton of videos on BP and YouTube, as well as a weekly podcast, where he walks you through the steps he uses to analyze a property. It's really not difficult and you'll have it down after a couple tries. If you want to get ahead, you need to put the effort in and practice.

There's no magic formula for calculating vacancy rates. You'll have to guess for a while until you build some experience. Most people estimate 10% vacancy rate. I manage 350 rentals and typically see less than 5% vacancy but it's sometimes higher and sometimes lower depending on the type of property. Experience will enable you to dial that in more accurately.