How To Analyze a Rental Property in Seconds…

How to quickly analyze a rental property in order to see if you should actually do more research

This can save you a ton of time and money!

@FasterFreedom

@Ordinary Guys Extraordinary Wealth Podcast

[MoMo-xxvu]

Hi, I'm nowhere as knowledgeable as you when it comes to real estate but I think I might have caught a small mistake. If rent = $1, 173 and $147, 900 * 0.008 = $1, 183 then to test the 1% rule of whether it cash flows, it should be whether the rent of $1, 173 is greater than $1, 183 (so whether rent > 1183 not 1183 > rent). Another way to look at it is $1500 rent/$147, 900 = 0.0101 (which just meets the 1% rule) while $1100 rent/$147, 900 = 0.00743 (is less than the 1% rule). So for cash flow we'd rather want rent of $1500 (rent > 1183) and not $1100 (1183 > rent).

[campmccoy]

First of all it’s not sped up, that is the one percent rule your just fudging the numbers to make more properties seem like they will cashflow with the 0.8% rule. Secondly the rent has to be higher than (purchase price x 0.01) not the other way around. If I had a $500, 000 property then 1% of that is well above the $2, 000 rent. Does that mean I’m gonna be cash flowing?!?!