PRACTICING ANALYZING PROPERTY

[Jason Malabute]

Hi All,

I JUST UPGRADED TO PRO!!!!

I am a first time investor. I want to practice and analyze rental properties using the BP calculator. My goal is I want to master (or at least practice) analyzing duplexes so many times using the BP rental property calculator that by the time my agent starts giving me leads I'll be comfortable analyzing properties quickly and accurately.

GOALS: 

Analyze 3 sample properties a week.

QUESTIONS:

1. Where can I get sample property numbers (besides purchase price) to practice with?

 2. What figures (income and expenses) must I include in all my analysis??

3. Since I am a first time investor how do I assure myself that I am analyzing my CF and other projections correctly and accurately?

Thanks.

[John Jacobus]

@Jason Malabute I recommend that you find a few of Brandon Turner's recorded webinars in the BP archives covering the topic of deal analysis.  With a Pro membership, you have access to the archive of all webinars.  Watching a few of these webinars should help you with questions 2 & 3 above.

Regarding your first question, I recommend that you use LoopNet (www.loopnet.com) to find a few properties that interest you. While you won't find many good deals, and they won't always have all of the important details available, you can use the inputs in the marketing package to practice going through the motions. Once you get comfortable with the process and you find a deal worth pursuing, reach out to the listing broker and request the trailing twelve month financials ("T12") and current rent roll to get a better sense of the financial prospects of the property.

I also recommend a few books on this topic that should help you get comfortable with analyzing deals:

• The ABC's of Real Estate Investing by Ken McElroy (Chapter 7)
• The Ultimate Guide to Buying Apartment Buildings with Private Money by Michael Blank
• 13 Steps to Valuing Your First Multiplex by Ben Leybovich