Rental Property Analysis in 2024: Find Cash Flow Even w/High Interest Rates
Description
Deal analysis is an essential tool in the investor’s toolkit and maybe the most crucial skill for breaking into real estate investing. Have you ever wondered how other investors can find a rental property, run the numbers, and buy with confidence? Well, you’re in luck because we’re dedicating an entire episode to this vital skill!
Welcome back to the Real Estate Rookie podcast! Today, Ashley and Tony are going to show you how to analyze real estate deals like a pro investor. First, you’ll need to determine your “why” for investing and choose your investing strategy. But after that, we’ll dive right into the most important factors to consider when breaking down a deal. Interest rates are a sticking point for many investors, and today’s high rates keep many of them on the sidelines. But we’ll share why this is a HUGE mistake and why your rate shouldn’t stop you from snatching up a great deal.
We’ll also discuss two types of properties that cash flow and how to find them, as well as how you can gain a competitive edge in your market by adjusting your buy box to include the properties other buyers are overlooking. Don’t go anywhere because we’ll even address some of the biggest mistakes we see rookies making—pitfalls that could hold you back from landing a home-run deal!
In This Episode We Cover:
The two things to pin down before you start analyzing properties
Two types of properties to buy if you’re investing for cash flow
Why you shouldn’t stop buying deals just because interest rates are higher
The most important factors to weigh for real estate investment analysis
The cash-flow-killing costs investors neglect when running the numbers
How to gain a competitive edge in your market by tweaking your buy box
Why you must niche down to neighborhoods when choosing where to invest
And So Much More!
Links from the Show
Ashley's BiggerPockets Profile
Buy the Book “Real Estate by the Numbers”
Find an Investor-Friendly Agent in Your Area
See Ashley and Tony at BPCON2024 in Cancun!
Introduction to Real Estate Investment Analysis
(00:00 ) Intro
(00:46 ) Deals Gone Wrong!
(06:02 ) Finding Your “Why” & Strategy
(09:12 ) Investing for Cash Flow
(15:56 ) Do Interest Rates Matter?
(21:29 ) Interest Rate Strategies
(28:29 ) Other KEY Factors
(32:35 ) Biggest Analysis Mistakes
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-450
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