Analyzing Rental Properties

[Tony Santos]

Hey BP,

So my partner and I are currently in the market for a buy and hold. We currently own a single family buy and hold where the numbers made so much sense that we didn't even have to analyze. Now that we are looking at bigger units 4-12 we have to crunch our numbers. We first decided we need $200 a month cash flow from each unit for it to make sense. Brandon Turners 50% rule and his opinion is $100 a month. Attached is an excel sheet which we created showing a current 6 unit which we are analyzing. We are slowly coming to a conclusion that we are too conservative and $200 a month for each unit will be hard to come by. We threw this exact offer in Brandon Turners 50% rule and if my memory is correct it shows 27% ROI and the $100 a month per each unit. So in that case this is a homerun and a no brainer to buy. But in our case and with this chart we created its not... So what does everyone think? Are we being to conservative? Also I would love to hear how everyone analyzes their deals.

Thanks BP,

Tony from Massachusetts < (keyword alert purposes :) )