Free Rental Property Analysis Spreadsheet (Excel, PDF)

0:00 hey everybody its Brandon so I was just 0:03 on the phone with a gentleman who was 0:04 looking to invest in Waco Texas and so 0:06 we were just talking about Waco a little 0:07 bit so I pulled up brildor.com 0:09 and I looked at the prices and I thought 0:11 hey it’s actually they’re not that bad 0:12 here and then I thought I’m gonna I’m 0:13 gonna when I got off the phone with them 0:14 I’m gonna run the numbers and just kind 0:16 of see what Waco looks like for a small 0:17 multi-family and then I thought hey why 0:19 don’t I record it and then put it on my 0:21 Instagram so other people can head and 0:22 see what I’m doing sound good so this Finding Properties 0:24 one I go and I went to a while 0:25 realtor.com it’s just one website to 0:28 find properties I typed in Waco Texas I 0:30 searched and I up here at the top I 0:32 chose property type multi-family let’s 0:35 do that and then I don’t want to see the 0:37 ones that are already pending or 0:39 continuing so I’m gonna hide pending and 0:41 contingent so now I’m left with just 0:43 properties and make Waco Texas that our 0:44 multi-family so we’ve got things from 0:46 753 35 to 39 kind of cool-looking 0:50 property 325 kind of all over the place 0:53 right 0:54 I like and then there’s this one on the 0:56 right side here and this is the first 0:58 one I have not analyzed it yet we’re 0:59 doing this live right now but I saw this 1:02 one and it said $280,000 and there’s 1:04 another one here on the left it looks 1:06 like and I thought this looks 1:08 interesting cuz of the two-car garage 1:09 typically this layout I like because 1:12 usually not always but many times the 1:15 water and the sewer is separated because 1:18 these are newer properties I mean this 1:19 was built in 2004 so chances are the 1:22 water meters are separate which means I 1:24 the landlord don’t pay water which is 1:26 always great for multifamily so I wanted 1:28 to analyze this deal and again I just 1:29 wanted to wait for you all to watch me 1:31 do it so there are no interior interior 1:33 pictures so I have to make some 1:34 assumptions today so please don’t go buy 1:36 this deal just because I analyzed it but 1:38 here that it says great opportunity and 1:40 cougar Ridge to get your own home cougar 1:43 Ridge it’s funny and investment property 1:44 at the same time this single-story brick 1:46 duplex features two three-bedroom 1:48 two-bath units located and coveted China 1:50 Springs is D so it must be like a 1:53 coveted coveted School District the 1:56 units feature open floor plans with 1:57 laundry hookups two-car garage fenced 1:59 backyard for residents to enjoy the lake 2:01 Waco Trail is just a short ride away and 2:03 provides a great way to relax you don’t 2:04 wanna miss your opportunity one of the 2:05 growing areas of Waco so I don’t know Rental Property Calculator 2:08 anymore Waco but this looks like an 2:10 interesting property around the numbers 2:11 on so is that alright can we do that 2:12 together 2:13 so uh yeah I’m gonna go over here to 2:16 bigger pockets come and click on tools 2:19 the navigation bar brings in the 2:20 calculators we’ve got like five main 2:22 calculators fix and flip rental bird 2:23 wholesaling and Rehab this is basically 2:26 a rental it’s already fixed up I’m 2:27 assuming so let’s go just basic the 2:30 rental property calculator for buy and 2:32 hold we’re gonna call it a title I’m 2:34 just gonna burn through this real quick 2:35 not explain everything that I’m doing 2:36 the Waco Texas duplex the address I’m 2:40 just gonna copy and paste the address so 2:42 in this case I already copied it into my 2:44 clipboard so there it is just doing some 2:47 basic copying and pasting at this point 2:49 everyone here should be able to do that 2:51 and taxes oh I don’t know what those are 2:54 well you know I’m gonna go over to 2:56 realtor.com I’m gonna figure it out so 2:58 if I scroll down realtor.com oftentimes 3:00 it’ll tell me there it is taxes about 3:02 six thousand dollars just just shy of 3:04 six thousand dollars so I’m gonna go and 3:06 go six thousand dollars on this one I 3:09 can add a photo you know why not I like 3:11 adding photos so it’s so add a photo in 3:13 there and select our file go to my 3:17 desktop there it is description I’m it’s 3:21 gonna put what the what the agent had 3:24 wrote here that’s good enough for me and 3:26 that’s it for page one let’s go to page 3:29 two what’s it what’s the purchase price 3:32 well let’s start with what they’re 3:33 asking 3:34 they’re asking two eighty two hundred 3:36 and eighty thousand dollars what’s it 3:39 worth when it’s all fixed up well it 3:40 probably is fixed up so let’s do that if 3:41 you don’t know how to find that hover 3:43 over the question marks closing costs 3:44 let’s call it $4,000 in closing costs 3:47 repair cost does that need any repairs 3:49 there’s always something let’s call it 3:50 $2,000 I don’t actually know and I’m 3:53 gonna put down a 20% down payment loan 3:55 at four point we’ll play four point five 3:57 percent interest 3:59 I’m gonna go amortize on a 30-year loan 4:01 I’m not gonna do the other ones for now 4:03 just to keep this quick and dirty now 4:04 what about what are these units rent for 4:06 well I’m gonna go over to rent ometer 4:07 let’s go to rent ometer that’s a site 4:08 that I use for quick and dirty numbers 4:10 and let’s put in the address here and 4:14 let’s see what they say on rent domitor 4:16 for a is like twelve hundred I’m 4:19 wondering twelve hundred for a 4:21 three-bedroom house or duplex is that 4:24 appropriate well let’s find out in this 4:26 neighborhood so 4:27 according to rent ometer I just guessed 4:28 at it but 1283 is average median is 1350 4:32 so we could potentially get up to a 4:34 $1,350 that’s good to know in fact a 4:37 four-bedroom is up to sixteen fifty 4:40 three which is crazy that’s good so this 4:41 is a high rent area I’m down below that 4:44 I can look at some of the other 4:44 properties to kind of see like you know 4:46 how similar those are to mine but for 4:49 quick and dirty right now let’s go 1,300 4:51 I’m gonna go a little higher than the 4:52 average because this is probably gonna 4:53 be a little nicer and it’s got that you 4:56 know the two-car garage and all that but 4:58 I’m not gonna go quite median so let’s 4:59 go 1,300 to keep it conservative right 5:01 now let’s find my where’s my there it is 5:06 so let’s go unit breakdown at a unit a 5:09 at a unit B and go 1,300 each does the 5:13 listing say sometimes the listing will 5:15 say what they’ll what their current rent 5:16 is yeah it doesn’t really say that’s 5:19 okay let’s see go back over here well 5:23 there any other income is there like 5:24 laundry income or anything like that 5:26 probably not now remember I said earlier 5:28 the reason I like side-by-side duplex is 5:30 typically I think I said this earlier if 5:32 not the reason I like side-by-side 5:33 duplex is actually newer ones is usually 5:36 the water and sewer lines are separated 5:38 I’m gonna assume that’s the case here 5:39 that the water and sewer lines are 5:41 separated and I’m gonna go ahead and 5:42 just say that each tenant will pay their 5:44 own electricity the tenants will pay 5:45 their own water sewer and garbage I 5:47 minutes to pay insurance probably gonna 5:49 run me about $800 a month and then I’m I 5:52 may in this case I probably won’t 5:55 sometimes on duplexes you have to do the 5:57 lawn care but because they have their 5:59 own garages and because they have their 6:01 own yards I’m gonna make them 6:02 responsible for their own lawn care so I 6:04 don’t worry about that either 6:05 now vacancy I usually do around 5% 6:08 repairs and maintenance anywhere between 6:09 five and ten depent so five percent of 6:13 the rent to ten percent of the rent 6:14 depending on the age of the home now 6:16 there’s a newer property so I’m gonna go 6:18 five percent same thing for capex this 6:20 is like big-ticket items were gonna save 6:22 up for a new roof every 20 years new you 6:25 know plumbing every 40 years new windows 6:27 every 30 years new appliances every ten 6:29 years capex is just saving up for those 6:31 items I’m at higher property manager 10% 6:33 to manage the rent of that one and then 6:36 I’m going to assume that we’re gonna 6:37 grow by let’s call it two percent income 6:40 growth 6:40 2% property value growth 2% expense 6:42 growth and someday when I sell the 6:44 property I got to pay real estate agent 6:46 in closing costs that’s sales expenses 6:48 someday let’s calculate the results and 6:50 find out what happens here we go five 6:53 four three two I have no idea my guess 6:56 is it’s not gonna be a very good deal as 6:57 is but what I got like I always say 6:59 every property has a number that could 7:01 make it a good deal every property other 7:03 number that could make it a good deal 7:04 let’s find out so here we go based on Analysis 7:06 our numbers we just ran monthly income 7:08 of twenty six hundred a month month 7:10 expenses 23 eighty four which means our 7:13 cash flow our estimated cash flows two 7:15 hundred and fifteen bucks a month not 7:17 terrible if you if you recall from my 7:19 criteria thing the other day I said I 7:21 want to get at least a hundred dollars 7:23 per month per unit is my like baseline 7:26 well two fifteen qualifies but remember 7:29 my cash on cash return percentage I’ve 7:31 said it twice now on Instagram lately 7:33 I want a twelve percent return I am NOT 7:36 anywhere close to twelve percent so you 7:37 know I’m gonna do I’m gonna start crying 7:40 and say there’s no good deals in my 7:41 market and go back to watch The Bachelor 7:42 cuz I think that starts soon right after 7:44 Dancing with the Stars gets done by guys 7:47 kidding of course every number every 7:50 property has the number so let’s find it 7:52 edit report let’s find another number 7:54 instead of paying 280 for this property 7:56 what if we were to pay 280 let’s what we 7:59 were to pay 230 let’s go crazy 230 now I 8:02 know people are saying they’re not gonna 8:03 take a 50 thousand dollar discount 8:05 probably not you never know right and 8:07 this also shows why off-market deals are 8:09 usually better let’s check it out though 8:10 check this out at 2:30 we’re still only 8:13 at a nine point six percent cash on cash 8:15 return but our cash flows bump to 417 so 8:19 we’re getting closer now if I was 8:21 getting a $50,000 discount I might be 8:24 okay with a 10% return so we’re probably 8:25 getting close let’s go let’s jump it 8:28 even more so this property let’s go down 8:31 to 210 again I doubt they’re gonna take 8:33 that but it’s worth running the numbers 8:35 and finding out it’s also why I like the 8:37 burst strategy cuz BRR you can usually 8:39 get better deals but just I turnkey you 8:41 duplex like this now at 210 I’m at the 8:44 twelve point four seven so I’m probably 8:45 out like a 220 now they’re asking 280 8:49 I’m probably around a 220 to make this 8:51 deal worthwhile now granted if I 8:54 believe that this market is gonna 8:55 appreciate really really hot then maybe 8:56 I would have I would have accepted a 8:58 lower cash in cash return maybe or you 9:02 know maybe other reasons but looking at 9:03 this chart like year 1 2 5 10 15 20 I 9:06 mean if I bought this property at two 9:09 hundred and ten thousand held on to it 9:10 for 15 years look how much profit I’d 9:13 have if I sold it over the course of 9:14 those 15 years three hundred grand in 9:16 profit is a fourteen point three five 9:18 percent return I can see my equity 9:20 climbing I can see my loan getting paid 9:22 off I can see my property value going up 9:23 over time I see my cash flow going up 9:26 every year hopefully so I’m making about 9:28 six grand a year from year one that 9:30 comes at almost seventy three hundred by 9:31 year five by year 10 off to nine 9:33 thousand so you can see it going up over 9:35 time so I know I just kind of a cool way 9:38 to look at the deal so this deal to me 9:39 this duplex I’d probably pay somewhere 9:42 in the 220 230 maybe 240 range you know 9:46 a maybe except in a slightly lower cash 9:48 in cash return but maybe you’re fine 9:50 with it maybe you’re good with a 5% 9:51 return and you can pay the full 280 I 9:53 don’t know I’m not gonna tell you what 9:54 to do what not to do but the one final 9:57 thing you can also download if you don’t 9:58 know this with the BP calculators anyway 10:00 you can download a PDF report like this 10:03 and it shows you all those numbers 10:05 nicely and neatly so that you can show a 10:07 lender portfolio lender a hard money 10:10 lender your spouse you can show anybody 10:13 you want your partners that you’ve done 10:14 your homework and this makes me feel 10:16 really good so when I before I make an 10:18 offer on a property I like to do this so 10:19 there you go that is how I run the 10:22 numbers quickly and efficiently and 10:24 easily and accurately on rental 10:26 properties and so it looks like in Waco 10:28 you know it’s not the end of the world 10:31 they probably would say no but that’s 10:32 why this is just a numbers game it’s 10:34 just a numbers game so I might make an 10:36 offer on this property and they’ll 10:37 probably say no but later on maybe 10:39 they’ll say yes if I offered on it maybe 10:40 this has been sitting on the market a 10:41 while or maybe I need to find a 10:43 fixer-upper so I can build that equity 10:45 in and get my cash in cash return higher 10:47 because I’m going to do the Bur strategy 10:49 I don’t know anyway if this was helpful Outro 10:51 make sure you give that little thumbs up 10:52 button or a little heart button below 10:53 this video whatever I do and follow me 10:56 follow us at bigger pockets everywhere 10:58 follow me personally on Instagram have 11:00 beardy brandon if you’re not and I’m 11:02 gonna get out of here cuz my little girl 11:03 just made some snickerdoodle cookies and 11:05 she’s making me a heart-shaped one 11:07 because 11:07 she loves me thank you so much you guys 11:09 have a great day