MasterClass on Analyzing a Real Estate Deal

8 min readMar 14, 2022
“Finance guys don’t invest in Finance “— Grant Cardone ($3B real state portfolio and counting)

By the end of this blog post, you will have all the tools you need to analyze a real estate investment opportunity for yourself. Analyzing the property is half the game. The other half is pulling the trigger on the deal after you’ve got all your numbers straight. And pulling the trigger requires the help of many people. Check out my latest blog post on the team members you will need on your side

How to Analyze a Rental Property:

If you don’t have the right math going into a deal, you’ll never have the right profit coming out of it. Knowing your numbers is absolutely mission-critical.

Cash Flow and Appreciation are what matters

Cash Flow = Income — Expenses. So then the question becomes what goes under income and what goes under expenses?

Income is basically understanding fair market rent, which is determined by a few factors like:

  • Location, number of bedrooms, and bathrooms
  • Amenities like air conditioning, parking, and applications
  • Size of the property
  • You can understand fair market rent better by
  • If you don’t get any takers, decrease the price of the rent until you do (slowly and with a reasonable amount of time for takers of course)
  • Looking at craigslist for the same area and type of property (# of bedrooms, bathrooms, amenities, and size of the property)
  • Verifying with local property management companies
  • Call local for rent signs (** note to self, figure out a way to search for this)
  • When a unit goes vacant, try to increase the rent, not only to increase the rent potentially but to see if the market will allow for it
  • Whereas if you have too many applicants, that’s obviously a sign that you can afford to increase the rent
  • Get your real estate agent to check the MLS, or to send you (I already do this)
  • Weekly reports on rental rates for their investor clients

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