How to Analyze a Rental Property (No Calculators or Spreadsheets Needed!)

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🎙️ This video will show you how to analyze a rental property without fancy calculators or spreadsheets. In fact, the formulas you’ll learn can be done on the back of an envelope, napkin, or any scrap of paper you can find!
Chad “Coach” Carson has used this “back-of-the-envelope” approach during 17+ years of buying investment properties. And it’s also the basic approach used by famous investor Warren Buffett to make multi-BILLION dollar purchases of large companies.

▶️ Next Video: How to Calculate Internal Rate of Return (IRR) for Real Estate Investing

🎬 Topics Covered:
0:00 - Coach's Intro
0:58 - Why the best deals don’t need a calculator
2:42 - The job of rentals and your financial goals
5:42 - The Gross Rent Multiplier
8:23 - The 1% Rule
11:10 - Cap Rate
15:31 - Net Income After Financing
18:31 - Cash on Cash Return
22:01 - Why Equity is Important
24:50 - 4 Ways to build Equity and Wealth

🔗 FREE Rental Analysis Cheat Sheet with Formulas:

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► Music Credit: Springtime Stroll by Secret Crates

[this_mfr]

Dozens and dozens of videos, with millions of views and click bait thumbnails and titles, and NONE of them cover this information. "How you can invest!" And then don't talk about how any of it is done. This is quality content and much appreciated.

[thebricklayer]

I love your back of the envelope calculation. I have owned up to 70 properties, made large amounts of money, lost large amounts too, but real estate investing really is this easy. You really do a great job breaking things down for newer investors. Thank you!

[antoinetbd]

Bro you are easily the most honest educational content creator out here on investment in real estate....thankyou for not being dramatic for likes and subs..I watch this several times to keep me grounded

[jeansoo-learngrowserve]

This video is GOLD. Every real estate investor should watch this. You went in depth on all the major components of real estate analysis and broke down the concepts so well. This is the type of video I'll always refer back to. Thank you!

[henrymenendez]

Man I am not going to lie to you, this is probably the best rental property investment video I have ever seen

[julianaw.]

This is the best video I have found on the internet about the topic. Well done!

[mjones]

Thank you for putting this simple yet in-depth presentation together. Simple math education in real estate at its finest. This was so helpful and it didn’t take some flashy so called “guru” giving vague examples. Wishing your channel much success!!

[TravelwithBreezy]

Literally the best keys to keep in mind when considering investment properties! I’m so glad this popped up in my search. Thanks coach! Keep these videos coming!

[hannahf.]

Thank you so much for breaking down how to analyze a property and then how to compare it to other potential properties. I’m just starting to consider rental properties and this was the perfect video to begin thinking about the relevant factors.

[jroberts]

That was a really good analysis. I’ve been around real estate for 15-20 years now, and you described these income elements better than I’ve heard before. I will definitely use this to teach my kids :-). Thank you

[mfundomkhize]

This is the most articulated and simplistically explained property Investment with calculations I have ever come across so far.

[kingtazz]

This is a great video and the first (but not the last) video of yours that I have watched. This video is explained and broken down to the simplest comprehension. Great job.

[christopherandersen]

Love this! You broke down each rule very well and helped me to better understand the foundations of them. I know NIAF as cash flow so my mind was a bit blown when it clicked that you were talking about the same thing.

[nicolemelveney]

Brilliant - Thank you for really breaking it down and laying it out - Really appreciate it! Im not great with excel - this really helped with being able to properly format. My clients will be equally as grateful! Looking forward to the rest :)

[pdurkim]

The fact that you put this lesson on paper makes your teaching so much easier to understand than others who just talk at you on video. Great job!

[nancyguzman]

I went through entire exercise of writing everything out and working out the formulas with real properties with my notes, then once I understood it a little better (I had to rewind several times, haha) I printed the cheat sheet and added some abbreviated notes as reminders. Great, simple tool for what at first seems overwhelming. Thank you!

[jeremiahglenn]

Hey, thanks so much for the video. I’ve sat through lots of videos to better understand how to “run the numbers” and not many are as easily explained as yours. I’ll certainly refer back to this over time and have subscribed to your channel. Keep up the great work!

[Just_trying_stuff]

Watching this video I feel like sitting with Coach Carson at the pubs bar counter and having a beer while he explains it all.
Great content

[TruthAboutRealEstateInvesting]

These are some great formulas when analyzing properties on your own. When we find properties for our clients in the Toronto area, we just run the numbers through our Property Analyzer spreadsheet for them. That way we can send them only properties that meet their cash flow and ROI expectations. Often we have to show clients what to expect from different markets so they are disappointed when we start looking for properties. But it also allows us to make a quick move on really good deals when they come up.

[brandonkilbride]

This is great information provided for free. I’ve been doing this stuff for a while and I haven’t found anyone on YouTube that explains it as well as you. Great job sir! 👏🏼