New to analyzing deals and have some questions.

[Dylan Fellows]

Im currently looking at multi family and single family homes with little to no renovation to house hack and I’m having a trouble understanding analyzing deals.       
Brand new to real estate and this may be a dumb question but when looking at properties obviously the asking price isn’t going to be the best deal for you so in analyzing the deal are you basically crunching down the numbers to figure out which offer will make the most sense to you to produce positive cash flow, And should that number you decide on be the maximum offer you would be willing the pay for the property? 

[Joshua McMillion]

@Dylan Fellows

When I do my first quick scan for properties on the MLS, I look at the total square footage and the home price. If that number is close to a 1 to 1 ratio, I then look at other factors I determined important to me in my crystal clear criteria. I build some quick excel calculators, and it gives me some different prices based on discount percentages of the original purchase price. 

If the number with all expenses will meet my CCC, I will hold at that number. Given the market, the homes I am targeting are selling with multiple offers at asking. Make sure the purchase price meets your criteria, and then determine your break-even number. That number should then be part of your escalation offer. 

Sincerely, 

Josh