Am I overcomplicating my analysis?

[Ryan DiCanio]

Hey BiggerPockets Community,

I am having some issues with overcomplicating my analysis' right now. If the numbers look "too good" I feel like I may have not accounted for something or am overvaluing a certain aspect of the property. This then gets me stuck analyzing the same property trying to figure out where I went wrong.

Any thoughts on how to mitigate that feeling and become confident in my numbers? Does it come with experience?

Any feedback would be appreciated!

[J. R. Crowell]

@Ryan DiCanio this is not uncommon and is even more prevalent if you are newer to the investment world.  You've received some solid advice so far: Evaluate the area, get up and "take a lap" then come back to your deal, evaluate the "class" of the property, etc.  I echo all of those statements. 

I'm not sure how many deals you have done, but one way I got over the analysis paralysis was by DOING A DEAL. There is a healthy piece of investment education that you have to learn on the go.  Until you put your analysis into action, you are simply working on theory.  Once you get a few deals under your belt, you have some evidence and a proof of concept, or a disproven theory. 

You most certainly need to do your homework.  I would start by defining your buy box, farm area, and non-negotiables on the subject property: size home, size of renovation, neighborhood, bed/bath, garage/no garage, etc. I'm making a sweeping assumption that you have defined all of that and that you know what financing route you will take (traditional, private, cash). If you need help there, let me know, I'm happy to share more about how I work this process.

Once you have those clear parameters and you find a deal that checks the boxes. LOCK IT DOWN and move through the process.  You've done your homework at that point and you didn't do it for nothing.  Take the confidence and put it into play.  You can analyze all day, but until you have results to compare, there is no clear answer. Best of luck, my friend!