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in Series: Getting Started in Real Estate · November 6, 2021

Best Real Estate Analysis Hack – The DealCheck App

In my blog post, How to Analyze Rental Property Investments, I promised a demo of my favorite real estate analysis app, Deal Check. So, here it is!

In my demo, I assume that you already read the other blog posts in the Getting Started in Real Estate Series. If the 1% rule or cash-on-cash return don’t ring a bell, I highly recommend reading my other posts first.

There are many spreadsheets and calculators out there so it makes it hard to decide which one is best. Prior to using deal check, I tried several spreadsheets, as well as the BiggerPockets calculator. The reason DealCheck wins is because I can do it in my phone on the-go. I also love the reports output which is great when financing a new deal.

In the video below, I am analyzing a live deal we are under contract to buy. We call it the BlueJays. This property is a Fourplex with two buildings. Each building has two units with 2Bed/1Bath averaging 600 SQFT. The rents are way under market with a potential increase of $740-$940. One of the buildings has been renovated, while the other has been completely neglected. We estimate that a $30k investment is needed to bring the second building up to standards, but after renovated, the property will bring about $900 in cash flow per month.

Please keep in mind that I analyze deals based on my investing criteria, risk tolerance and overall long-term plan. We are not in this game for short-term gains. We are willing and able to take a negative hit at first for the sake of long-term returns. Some investors would disagree with our purchase criteria and that’s okay.

ANALYSIS DETAILS

Inputs:

  • Conventional Financing of 75% of purchase price with 5.625% interest rate.
  • Financing of the 25% down payment for a year at 10% interest rate
  • As-in rents: $475+$450+$235+$300= $1,460. (Way below market)
  • Operating Expenses and Reserves:
    • 10% Vacancy
    • 10% Maintenance and Repairs
    • 5% Capital Expenditures
    • 10% Management Fee
    • Property Taxes with estimated increase due to sale
    • Insurance per quote received from our insurance broker, Real Protect
    • Landscaping estimated at $100 per month based on other agreements

Our Purchase Criteria:

  • At least $300 cash-flow
  • Monthly operating expenses should not be more than 50% of the rental income
  • Cash-on-cash return must be 10%
  • Potential rent must yield $150 per unit.

The video below is broken into different segments: Intro, Property Analysis, Setting Purchase Criteria and Market Analysis.

There you have it. This is how we analyze most of our deal these days. I say most because after you get the hang of it analyzing deals becomes a lot easier and you can quickly bet out properties in your head.

If you are looking to get started in real estate, analyzing deals on a regular basis is the best way to learn your market and get comfortable with running the numbers for a deal.

Deal Check has a forever free version so you can give a try just for fun.

If you decide to go for the premium version and would like to support me, you can use my code and link for a 30% discount. Affiliate link – DealCheck/Beyondjustnumbers, enter my promo code: BESTDEAL for the discount.

In the next post, I’ll explain the BRRRR method. BUY, REHAB, RENT, REFINANCE & REPEAT.

Thank you for reading and let me know in the comments if you have any questions or would like me to write about something specific.

If you found this post helpful, please leave a ❤️ below.

This post may contain affiliate links. I may get commissions for purchases made through links in this blog.

Previous Post: « Retire with Real Estate: Investment Strategies
Next Post: Real Estate Investment Strategies: The BRRRR Method »

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New Blog Post 🚨 In this week’s blog post I am New Blog Post 🚨 In this week’s blog post I am going over why we bought a short-term rental, our experience so far. Plus what we did prior, during and after purchasing our first short-term rental in March 2022, a Cabin in Blue Ridge, GA.

Check it out at www.beyondjustnumbers.com or link in bio @beyondjustnumbers
I can’t stress this enough. Some investors are l I can’t stress this enough. Some investors are looking to make money from day one, but that’s not always the case. It wasn’t for us and I’ve talked to a lot of rookie investors who have told me “Thank God I have my personal finance situation together.” 

This is just my opinion. Do you agree? Let me know in the comments!

Want to join a free community of like-minded individuals? Join our REI Coffee Chat Community where we talk real estate investing, personal finance and financial freedom, and much more! Link in bio @beyondjustnumbers

Want to learn more about investing in real estate? Read my blog www.beyondjustnumbers.com

#realestateinvesting #realestateinvestor #creativefinancing #investmentproperty #buyrealestate #firemovement #debtfreejourney #financialindependenceretireearly #rentalproperty #investinginproperty #personalfinanceblog #wealthbuilding #planforretirement #investorlife #livefree #airbnb #moneyisfreedom #enjoythejourney #reicommunity #realestateinvestments #shortermrentals #cashflow #realestate
I used to think that investing in real estate was I used to think that investing in real estate was for the rich. I became in love with real estate while working for a real estate investment company that owned hundreds of units. This was back in 2011 and I was 20 years old at the time. I had less than 5 years permanently living the US, so I had no idea about anything. I grew up in Colombia and the only talk of money we ever had was the lack of it. 

The investors I worked for were a wealthy family, so naturally, I thought… Real Estate requires wealth. I don’t have wealth. Therefore, I cannot invest. 

I figured… well shit, I need become wealthy so I can invest in real estate. Eventually, after educating myself I realized how wrong I had it. You can build wealth BY INVESTING in real estate.

Took me a couple of years to figure it all out. Hence, why I didn’t start investing until 2019. I wish I had figured out earlier, but it is what it is. In just 3 years of investing in real estate, I was able to accumulate more wealth than I ever thought possible. 

Just to give you an idea…Did you know you could invest in real estate with as little at 3.5% of the purchase price? For a $150,000, that’s only $5,750. Buy a duplex that needs a little bit of work, fix it up, rent one side and live in the other. This will reduce your monthly expenses significantly, save the money and do it all over again.*

Of course it’s not that simple, but it’s also not that difficult. There are some particular steps and considerations which is  why I recommend doing further reading on the subject. 

Book Recommendation:
✅“The House Hacking Strategy” by Craig Curelop and ✅“Investing in Real Estate with No (and Low) Money Down” by Brandon Turner. 

#realestate #realestateinvesting
🚨 New Blog Post! Continuing the “Getting Star 🚨 New Blog Post! Continuing the “Getting Started in Real Estate Series” 

You’ve found a property either on your own or through a realtor, you’ve run your numbers, you’ve got a lender and now you are ready to make an offer. What’s next?

In this post I want to discuss a few items:

✅Key components of a real estate contract
✅How do you make a compelling offer to ensure you get the property you want
✅The main contract contingencies and how they work
✅Communicating with your realtor

I also provide real examples of what we have done personally. 

Check it out at www.beyondjustnumbers.com

Let me know what you think!
If I listed all of the hats, I’d never end 😂. If I listed all of the hats, I’d never end 😂. Anyone else? Show me the multiple hats you wear and tag me. Let’s have fun with some reels.

Trying to get good at the real game like @investinginyourwealth. How did I do?
The fact that you are not where you want to be doe The fact that you are not where you want to be doesn’t mean you won’t get there. Greatness takes time. Focus on what you control.

And remember, it’s okay to pivot.

#mindset #realestate #firemovement #realestateinvesting #realestateinvestor #rentalpropertyinvestor #rentalproperty #cashflow #motivation #financialfreedom #financialindependence #financialindependenceretireearly
We see a lot of advice around hiring a real estate We see a lot of advice around hiring a real estate friendly CPA. However, when you look up  CPAs that specialize in real estate, they can be pricey.  However, that doesn’t mean that other CPAs or tax professionals aren’t good. They might not be particularly aware of certain items, but they can research and collaborate with theirs peers. Perhaps it may require you to do a little of work to compensate. Things you can do:
✅ listen to The Real Estate CPA podcast or join the Facebook group
✅follow social media accounts of the pricey Real Estate CPA and take notes of what they are saying
✅attend free educational events 
✅read BiggerPocket book on Real Estate taxes 
✅if you know anyone working with a really good Real Estate CPA firm, ask them what they are doing

Then use that to go your CPA or tax professional and be like “Hey, is this something we can do for me?” They’ll probably say, “Let me look into it”. 

If they are good, they are going to research it and/or ask their CPA peer group. (CPAs and tax preparers also have Facebook groups where they collaborate with each other).

Here is a piece of advice, if they tell you “No, we can’t use this loophole or no, you don’t qualify to use this strategy” —> Ask WHY and “How can I qualify in the future?.” This way you confirm they did their homework and aren’t just being lazy. Don’t just take no for an answer. You can then get a second opinion by asking a question in a forum or to your peers.

So don’t panic if you don’t have a real estate CPA or tax professional. 

Next video I’ll be answering the question… “Can I skip the tax professional altogether and do my own taxes?”

#realestate
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