Investment property
Real estate investing starts with the numbers.
Whether you are looking at a first rental or adding another property, the question is the same: what does it cost, what does it rent for, and what is left. Alex owns rental property himself and looks at these from both the agent side and the owner side.
Long-term rental analysis
Purchase price, financing, rent and the running costs, worked through to monthly cash flow, NOI, cash-on-cash return and how long the cash you put in takes to come back.
Monthly
Monthly
Monthly
Of rent. Use 0 if you manage it yourself.
Of rent. What you assume sits empty.
Of rent, set aside for repairs
A planning estimate for a straightforward long-term rental. It does not model appreciation, tax treatment, a refinance or a sale, and it is not an underwriting tool. Real numbers depend on the specific property, the financing you are offered and what the place actually rents for.
Run the numbers on a specific property
Send Alex an address you are considering and he will work the rent, the carrying cost, and what is left.
Rent based on what is actually leasing
Comparable rentals nearby rather than a national estimate applied to a Kansas address.
The full carry, not just principal and interest
Taxes, insurance, and the maintenance number most spreadsheets leave out.
What is left every month
The figure after the carry, stated plainly, including when it is negative.
What the house needs before a tenant
The work it would take to make it rentable, and roughly what that runs.
Whether Alex thinks it is a good buy
He will tell you when he thinks the answer is no. That is the point of asking.
Investor terms, plainly
Will you tell me a deal is bad?
Yes, and that is most of the value. An agent who approves every address you send is not screening anything, they are processing paperwork.
Do you work with people buying their first rental?
Yes. The analysis is the same either way, and the first one is where an honest second opinion is worth the most.
Can you look at more than one address at a time?
Send them together. Comparing several properties side by side is more useful than looking at one in isolation, and it is faster to work them as a batch.
What about properties that need significant work?
Those need a scope and a contractor number before the analysis means anything. Alex will tell you when a property cannot be evaluated responsibly without one rather than guessing at a rehab figure.