Multifamily Analysis Recourses?

[Jack Lee]

Hello BiggerPockets community, I’m 20 years old and have been saving diligently since I started working. I’m now at a point where I feel ready to start investing in real estate. My plan is to purchase a house hack in Worcester, MA, within the next year. I’ve been listening to podcasts and am currently reading The House Hacking Strategy by Craig Curelop, which has been really informative.

One area I’m struggling with is deal analysis. If anyone has recommendations for free resources—whether it’s books, websites, videos, or anything else that could help me sharpen my skills—I’d really appreciate it. Thanks!

[Pat Aboukhaled]

Hey Jack,

First off, huge congratulations on taking this step at just 20..you've got a bright future ahead in real estate! I remember when I was starting out, deal analysis felt like trying to solve a complex puzzle without all the pieces. It's totally normal to feel a bit overwhelmed.

One thing that really helped me was diving into real-world examples. Since you're focusing on Worcester, try pulling up some local property listings and practice running the numbers on them. It gives you a practical feel for the market dynamics there. I used to spend weekends doing this, and sometimes I'd spot opportunities others missed.

Also, have you checked out any local investor meetups? The Worcester Investor Network hosts informal gatherings where experienced investors share their insights. A friend of mine attended one and found it incredibly helpful..they even walked through actual deals they've closed in the area.

Don't overlook online resources either. Websites like BiggerPockets have forums where investors break down deals step by step. I've learned a trick or two just by reading through those discussions. And sometimes, connecting with a mentor can make a world of difference. When I first ventured into the Austin market, I teamed up with an experienced investor who helped me fine-tune my analysis skills.

Remember, everyone starts somewhere, and the best way to learn is by doing. Keep practicing, ask lots of questions, and don't be afraid to reach out to folks who've been down that road.

Looking forward to seeing how your journey unfolds!

- Jasper / Pat Aboukhaled
Turning investment visions into reality in Phoenix, AZ - Ranked #1 for residential real estate growth and opportunity by PwC

[Daniel McDonald]

@Jack Lee Craigs book was what got me really started on house hacking. I've been house hacking now for about 5 years In Beverly, MA. What part of analyzing deals are you stuck on? House hacks are not like a traditional investment property and admittedly a little more emotion will play into whether it's going to work or not for you. It's definitely not as cut and dry as a BRRRR or flip.

[Brian J Allen]

@Jack Lee is is great to know how to structure the deal, another is to find the property and make sure you are not missing the issues you will run into with an older house.  Let me know if you want to see some properties in Worcester.

[Wale Lawal]

@Jack Lee

To improve deal analysis skills, use BiggerPockets Calculators, YouTube channels, podcasts, books, online communities, Excel spreadsheets, and local networking events. These resources provide real estate content, house hacking strategies, practical advice, and real-life deal analysis threads. Utilize Excel spreadsheets and attend local networking events for valuable insights. Practice makes perfect, and stay curious for success in the real estate investing world.

Good luck!

[Jack Lee]

@Brian J Allen will do, thanks for the advice.

[Jack Lee]

@Pat Aboukhaled 

Thanks for the advice! I'll definitely start incorporating the idea of practicing with properties on the MLS. I'm setting a goal of analyzing two properties per week to start and will build from there.

[Jack Lee]

@Daniel McDonald

Thanks for the advice! It’s definitely reassuring to know that you started with Craig’s book too. It makes me feel like I’m on the right track. I’ve noticed, like you said, that everyone seems to do things a little differently when it comes to house hacking, and analyzing deals is no exception. I’m curious—how did you analyze your house hacks? Did you use a calculator or spreadsheet, or did you simply work out the math like rental income minus PITI, 8% for CapEx, 8% for vacancy, and 5% for repairs?

[Daniel McDonald]

Quote from @Jack Lee:

@Daniel McDonald

Thanks for the advice! It’s definitely reassuring to know that you started with Craig’s book too. It makes me feel like I’m on the right track. I’ve noticed, like you said, that everyone seems to do things a little differently when it comes to house hacking, and analyzing deals is no exception. I’m curious—how did you analyze your house hacks? Did you use a calculator or spreadsheet, or did you simply work out the math like rental income minus PITI, 8% for CapEx, 8% for vacancy, and 5% for repairs?

 I was using the BP calculator for awhile, but honestly it’s more than what a house hacker needs. So I made a spreadsheet. Been trying to actually make a new one that’s more HH focused. 

[Sam Maropis]

Congratulations on saving up and getting ready to buy. One area that folks have done well is buying a 2-4 unit and living in one unit for at least one year. this way you can get good funding and still have a very valuable asset. Some homeowners hire a property manager to manage the other 1-3 units for the owner. I manage a number of units that the owners never want to tell the other tenants they are the owners. 

[Dan H.]

Quote from @Wale Lawal:

@Jack Lee

To improve deal analysis skills, use BiggerPockets Calculators, YouTube channels, podcasts, books, online communities, Excel spreadsheets, and local networking events. These resources provide real estate content, house hacking strategies, practical advice, and real-life deal analysis threads. Utilize Excel spreadsheets and attend local networking events for valuable insights. Practice makes perfect, and stay curious for success in the real estate investing world.

Good luck!

[Jack Lee]

Thanks for the amazing feedback!

[Michael Smythe]

@Jack Lee your probably analyzing properties incorrectly.

You’re probably thinking you have to offer asking price – not true!

To determine what to offer on a rental property:

• Determine reasonable market rent, NOT the highest!
• Deduct NEW property taxes after you buy
• Deduct home insurance costs
• Deduct maintenance percentage, typically 10%
• Deduct vacancy+tenant nonperformance percentage
  (we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)
• Deduct whatever dollar/percentage of cashflow you want

Now, what you have left over is the amount for debt service.

Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.

Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.

If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.

Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.

As long as the ARV checks out, this is the purchase price to offer.

It is probably significantly below the asking price. Who cares? If you pay more, you won't meet your metrics and will probably have negative cashflow and/or equity.

You may have to make 10, 20 or even 100 offers to get one accepted at the price that meets your numbers.

[Leo Gregoire]

Welcome Jack!

i'm a real estate agent and advisor with Candor Realty; we specialize in working with investors.

i like to see the next generation interested in investing in real estate so early.

As a member of the brokerages Worcester team, i focus a lot on central Mass multi family properties and househacking in particular.

feel free to reach out with any questions!

i'd love to talk a bit about the market and show you how we run our numbers to see if there's something you can work with.

[Jack Lee]

@Michael Smythe

Thanks for the detailed message, this is extremely helpful. The one question I have is do you deduct anything for capital expenditures in this model or does that fall under the 10% maintenance?

[Michael Smythe]

Quote from @Jack Lee:

@Michael Smythe

Thanks for the detailed message, this is extremely helpful. The one question I have is do you deduct anything for capital expenditures in this model or does that fall under the 10% maintenance?

 Included in 10% MNT