What do you need to know when you’re evaluating your rental properties? What are the best ways to look at the numbers, and how does that change over the years? Having a thorough understanding of how you make money in real estate is key to being able to assess the performance of your property. Successful rental property analysis comes from understanding how your returns will change over time.
Whether you’re managing the property yourself or hiring it out, make sure you know what you’re getting into before you purchase it. Taking your property manager with you to walk the property before you buy is a great way to ensure you’re getting something manageable over the long run.
To dive into these concepts, we brought in Lon Welsh, seasoned investor and founder of Ironton Capital, and Eric Ross, property manager with Ecospace Property Management. Check out the webinar to see their ideas in action as they evaluate two different types of properties.
Watch the Webinar:
In This Webinar We Covered:
- Evaluating an Aurora condo and why higher cap rates lead to more risk but more reward
- Evaluating a passive investment in a newbuild neighborhood in Florida
- A 5-year model for exiting a property, whether by selling or refinancing
- Are HOAs bad? Why both Lon and Eric are fans of homeowners associations
- How to look at net operating income, debt service, and cashflow to successful rental property analysis
- Why internal rate of return is the best way to evaluate returns because it takes into account the four ways you make money in real estate
- Some great tools for getting rent data
- Finding the sweet spot of how much to put down for new investors
