Here's the breakdown of rental income and expense analysis:1.Annual Gross Income: $25,800 (Monthly rent of $2,150 x 12)2.Annual Expenses: $25,800 * 0.40 = $10,3203.Annual NOI: $25,800 - $10,320 = $15,4804.Annual Debt Service: $10,680 (Calculated previously using a mortgage calculator with a loan of $131,775, 7.25% interest, and a 30-year term)5.DSCR: $15,480 / $10,680 = 1.45 (approximately)

It was a great way to do a quick analysis on a potential property.

I look at foreclosures.comOut of the 3 stages I am definitely not ready for an auctionpreclosure / short sales:- I need to research how to take over a deed / title- need to prepare how to do door knocking (I have a sales background and feel confident in dealing with an emotional conversation about someone’s home) - there IS a window of like 4 weeks that I need to prepare for (have my finances in order) to then bid before it goes to auction?

Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started.

Today, I want to share why I've pivoted to developing container home senior communities and the investment analysis behind this decision.Background:Running a distressed property fund taught me to identify undervalued opportunities and market inefficiencies.

I have a cash flow analysis spreadsheet that I like to use when looking at deals for my investor clients to make sure the numbers work.

Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started.

Instead, I'd just rely on a CMA (comparative market analysis) of renovated properties in the area from your realtor unless you have local MLS access yourself to run the report. 

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

Also should be a new market analysis every time, and with that comes negotiations back n forth with landlord and tenant.