Popping the Hood & Kicking the Tires: How to Analyze an Investment Property Operating Statement

You’ve narrowed down your search area, scoured hundreds of investment property listings, and finally found one that looks interesting! 

Now what?

It’s time to pop the hood, kick the tires, and and take a closer look at the property’s current and potential performance!

In the video below, I show you how to do just that, and provide a in-depth, yet simplifiied look at some of the key metrics real estate investors need to master and use on a daily basis, including:

  • Cap Rate
  • The 50% Rule
  • The 1% Rule
  • Debt Service Coverage Ratio
  • Break Even Ratio

When you master these five simple formulas, you can quickly and accurately analyze any potential investment property!

In the video, we’ll also put these formulas to the test by analyzing an actual multifamily listing to determine whether or not the property is a good investment at certain price points:

 

Close Menu