How do you analyze rental properties? In other articles, I showed how to run the numbers with back-of-the-envelope analysis, including the super-simple one percent rule. But the most important rental analysis tool I use is something called a cap rate. In this article, I’ll explain what a cap rate (aka a capitalization rate) is. I’ll […]
The One Percent Rule – Quick Math For Positive Cash Flow Rental Properties
The one percent rule is an analysis tool used by real estate investors to quickly screen potential rental properties. I briefly covered the one percent rule in How to Run the Numbers Using Back-of-the-Envelope Analysis. But in this article I’ll go into more depth about what it is, when to use it (and when not to!), […]
How to Confidently Buy An Investment Property – My Go, No-Go System
Have you ever been afraid or uncertain about a decision to buy an investment property? When you’re spending hundreds of thousands of dollars on one purchase, these feelings are normal! The question is how you respond to the fear and uncertainty. Do you slip into analysis paralysis where you’re frozen and never make a decision? […]
How to Run the Numbers For Rental Properties – Back-of-the-Envelope Analysis
Rental properties in the right location and with the right numbers are incredible vehicles to take you to financial independence. But without getting both of those factors right, rental properties may not work well. So, in a prior article, I shared how to find the right location. In this article, I’m going to show how to find […]
How to Calculate Rental Property Cash Flow – A Comprehensive Guide
Investors don’t decide to buy properties; they decide to buy the income streams of the properties.” – Frank Gallinelli Some rental buildings are beautiful. I particularly admire well-constructed, brick structures with hardwood floors and large, dry crawl spaces. But the building only matters indirectly for rental property investors. The beauty of the building is relevant if it attracts […]
The Two Rules of a Real Estate Deal Maker
I’m here to tell you that you’re a real estate deal maker. Or at least you should be. After almost 14 years of full-time real estate investing, I’ve come to realize that my #1 asset is my ability to put together good deals. The world is awash in money (really, it is – look at this stunning […]