All Forum Posts by: Ryan Chatman

@Sokhna Wade This is the deal analysis spreadsheet; I've tweaked it to make it work for me:

https://bit.ly/3EAhMm8

Complete all of the Purple Boxes with your property's data and it will crunch the numbers. Looking at the Year 1 data is typically enough.

It also calculates Cap Rate, 1% Rule, and Cash on Cash return percentage

I think the 1% rule, CoC, Cap Rate, and some other metrics are fine for comparison sake but none are a one-size fits all. I personally like to look at the amount I'd like to net (per door) when analyzing.

@Sokhna Wade

@Nicholas R Paust Congrats on making it to the second deal!

My go to is this deal analysis spreadsheet; I've tweaked it to make it work for me:

https://bit.ly/3EAhMm8

Complete all of the Purple Boxes with your property's data and it will crunch the numbers. Looking at the Year 1 data is typically enough.

It also calculates Cap Rate, 1% Rule, and Cash on Cash return percentage

I think the 1% rule, CoC, Cap Rate, and some other metrics are fine for comparison sake but none are a one-size fits all.

I am by no-means seasoned, but I have done quite a bit of analysis on properties while searching. 

I think the most important thing is analyze a deal with conservative estimates and see if those numbers align with your goals. Some investors look to make net profit of $100-$200 per door. For mine I wanted my per door net to be higher.

@Canesha Edwards not yet!

I went to morehouse and lived there for another 10 years.

I'd previously lived in midtown, west end, capitol view, buckhead, lakewood, and perimeter areas. So I have a good feel for the areas ITP.

@Baylee Shepherd I will speak directly to the negotiating question. Pricing is going to be directly driven by the market the property sits in. Currently a good majority of markets have high demand and low supply so you may see things like bidding wars. Your agent is key in this regard because they'll be negotiating on your behalf, and they also need to be expedient in submitting offers and counteroffers, etc. We had to fire a real estate agent because she was moving too slowly + lacked negotiation tenacity and it caused us to miss out on deals.

Once under contract, you can also negotiate further depending on how inspections of the property come back and also appraisals. Sometimes things are uncovered in inspections which you can leverage for negotation.

@Tim Monistere the tools that @Joshua McMillion mentioned are great tools to use plus I'd add to that list by using zillow rentals, apartments.com, Facebook marketplace, and see what the exact match apartments typically go for.

Also take into consideration the type of finishes or other items you include with your unit. For example, your second floor (and I don't think you mentioned if there is private outdoor space) is a plus that regular apartments or apt buildings won't have. I'd charge a premium for those for sure.

When it comes to pricing your rental, always start higher. Lower it if you aren't finding the applicants you need. If you start the price too low it'll be tough to justify to applicants a higher price after you realize you have a million people interested and you priced it too low.

@Mike Bitette you should be able to find some decent deals for a low entry point (120k and under). In Allentown there are some good pockets that are nicer blocks/neighborhoods, but also check out the surrounding cities, Whitehall/catasaqua/bethlehem slightly better than some parts of allentown and could yield slightly better rents.

@Canesha Edwards great breakdown of ATL! I definitely see the most opportunity happening south of I-20

@Mike Bitette what type of rental? There's lots of opportunity here and a good cash flowing rental market.

@Sokhna Wade an easy way to start is finding a real estate agent to work with in the area you'd like to invest and go out and see properties within the budget you are seeking. You can also do this on your own, but the agent will be able to narrow down many options and if they're really good they'll uncover some gems or off market deals.

What I suggest is doing basic deal analysis on each of the properties you visit and you'll improve the "math" skills that you mention you struggle with. If you want I have a decent excel deal analyzer based off of some I've found on the internet previously. Looking at places and doing deal analysis at least gets you started for free.

Like @Randall Alan mentioned, getting started is the most important piece.

@Travis Carter to put it short and sweet, Kitchens and Bathrooms.

Secondly I am a big proponent for good lighting. This might be arguable for some, but to me dark and poorly light doesn't sell/rent as well as units that are well/thoughtfully lit with updated fixtures. I also suggest this because it's a very low cost way to make all of the spaces better.