How to Analyze a Single Family House Rental Property

[@nwprt]

I watch your videos over bigger real estate KZbinr names. Because you are about efficiency you don’t have endless KZbin money to throw at something you’ve actually worked things out in a way that saves money thank you so much!

[@CoachChadCarson]

thanks for your feedback and for watching my videos! It means a lot! 🙏

[@thrifttherunway]

I'm so sick of youtubers saying "the link is in the description" to solicit you a paid subscription or get you to add your email address without the full disclosure up front.🤚🏽

[@MichaelSmittySmithScottsdaleAz]

Good information. In the past few years I've seen investors by based on appreciation only. They also don't take enough money and put it aside for air conditioners especially in Arizona and other expenses such as roofing. They think they are making a positive cash flow of 200 to 500 per month but they have a 5-year lifespan on the roof and a 1 year on their air conditioner. Now prices have doubled on everything and they're at a loss. We're seeing that really big right now with the Airbnb operators here liquidating because prices have gone down competition is gone up and interest rates are so high it doesn't make sense anymore

[@datweetee1]

Yea please make a video on how you run comps/estimate value! T thank you for all that you do Coach! We are excited but also nervous to start our journey but with your guidance, it gives us a little bit more confidence to just go out there!

[@CoachChadCarson]

Will do!! And thank you for watching. Best of luck on the next steps of your journey.

[@loganh9981]

Thank you, real info, real education, real life examples, real learning! I am grateful and appreciative for the time you took to make this and spread your knowledge

[@CoachChadCarson]

I appreciate that feedback! Glad it was helpful, and I hope you find other videos on the channel helpful as well. Lots more to come every Monday!

[@alpinismutilitar3886]

Thank you for the video and for the effort.

[@CoachChadCarson]

my pleasure! thanks for watching.

[@roldancrespo]

Coach it's great to see optimized versions of your back in the days REI Math Videos. Very valuable explanation on the Virtual SURBAN analysis!!

[@CoachChadCarson]

thanks Roldan! Trying to go back to the roots while still making it fresh!

[@sherrygorman9083]

Great Video!!!! Thank you so much!!!

[@priceandpride]

Love your breakdown approach but not sure how I feel about using zuber’s terms for buy box and alligators instead of more plain language

[@joshmac5914]

Great video,ty!Would love to see one on comps!

[@CoachChadCarson]

thanks for the feedback! On my list.

[@danielnolte3579]

You're video is excellent! I would love to see a comping video analyzing local comps and the value of our own properties. Could you show us with caps rates and traditional comps?

[@CoachChadCarson]

Great suggestion! thank you. Yes, I'll do one with comps/comparative market value and another with income approach. I do have a cap rate video I made a while back: kzbin.info/www/bejne/b4nCYp5nrJuoacUsi=l8wyJ1UYRl8uX5TW

[@Jsitun]

Coach, do I get a single family home now to be able to put equity into it, or do I save a bit more and get a duplex later this year? If you had to choose?

[@AberrantArt]

I've heard so many rules of thumb for operating expenses. 30-50 is most common. Would you mind doing a video on how you run detailed operating expenses?Include things like Vacancy, Maintenance, Capital Expenditures. Lawn care, and anything else that most people don't think of?

[@CoachChadCarson]

Great suggestion! Thank you. I've added that to my "how to run the numbers" video ideas.

[@AberrantArt]

@CoachChadCarson ❤️ awesome! I appreciate you taking suggestions. Looking forward to it. Keep up the great work!

[@CarolineSilver-g6t]

Coach, your video improved a ton! What do you think about the new tool Airbtics for analyzing vacation properties?

[@mercyannepublico2675]

Coach, thank you for this information really helpful. One question for a purchase via 1031 exchange. Would the cost be the full purchase price or purchase price minus the amount that was exchanged? Thank you.

[@David-ps1jk]

Live in Northeast, Southern New Hampshire. Nothing in this area sells for $150k. This would go for $395k in a weekend. So calculations would reflect a much longer ROI or not feasible once numbers are calculated. Still good basic information.

[@trent_dyrsmid]

Hey Chad....I've tried a few times to get your desirability checklist, but it hasn't hit my inbox yet. The other spreadsheet did, so thanks for that, as well as this terrific video.

[@stevejudkins2033]

I’ve signed up for everything on Coach’s website but have not been sent the rental property calculator spreadsheet that was promised. That’s all I really wanted.

[@EricEsser]

Yeah. This is pretty much what every property analysis looks like to me right now. You have to believe in continuing growth for most properties to make sense. If you’re 25 years old, maybe go for it. But if your time horizon is shorter (eg you’re in your 50s), there is real risk that housing reverts during the next downtown and you have very little price appreciation to count on over a pretty long number of years. There are many areas of the country that have experienced nearly 100% price growth since 2019, and idea that you can expect a linear 3-5% growth from this new baseline seems insane.

[@Coast_to_Coast]

Love videos like this!

[@CoachChadCarson]

Glad you like them! Thanks for watching.

[@IPVDC]

Did I miss it... Why not include the cost of disposal of the property? I understand its impact on annual returns varies based on length of ownership, so it'd have to be based a predetermined length of time as an example. But when I look at the numbers it's important to consider how long I want to own this property. If less than 10 years and buying with a loan the impact on annual returns is very significant because not all that much equity is built in that timeframe and 6% on the full (appreciated) value of the house is a lot when compared to the initial cash investment via a DP/closing costs/initial repairs.

[@arielspivak1113]

Hey man, thanks for what you do. It's helpful and educational. Yes, I am certainly interested in seeing how you run comps, etc. to underwite deals and feel like you've done your homework reasonably well. I'm planning on deploying a lot of capital (close to 7 figures) this year, and I'm only mildly experienced in REI, so I've probably been overthinking deals I come across. I would really like to see what you do, how much time you spend on it, etc. before submitting offers.

[@CoachChadCarson]

Added to my near future videos list. Thank you! In the meantime, good luck with your next steps deploying capital. I recommend starting simple with properties that are easy to understand (like single family house rentals). Walk before you run!

[@arielspivak1113]

@@CoachChadCarson That's good advice. Thank you. I've walked a bit. I've been a landlord before, I am turning my current single family into a rental because I'm buying another one (had a 2nd kid, need more room) and I'm thinking triplex or quad (if I can find a good one that pencils out) or mixed use for this capital in particular. I also own a NNN single tenant with some family, so I'm trying to diversify a bit as well. Thanks for taking the time to reply and hope you feel appreciated by us YouTubies for your efforts.

[@Bpizzle8811]

Do sellers actually take a 30 year term? That seems a long time to get money from a sale of a home.

[@circa33]

@coach Carson, great simple presentation. Just curious, why not a field for the Cap rate?

[@CoachChadCarson]

Thank you! I do use cap rate / unleveraged yield a lot, but the intention of this spreadsheet was to just so simple cash flow and return metrics. However - it might be time for an upgrade since cap would be an easy addition. Thanks for suggestion!

[@rubayyatkhan]

This is great! Thanks coach. Are you buying these properties in LLC or in personal name?

[@CoachChadCarson]

Mostly LLCs

[@rubayyatkhan]

@@CoachChadCarson mine are all in LLC as well. Which means interest rate is fixed for 5-7 years amortized 25 years. Is that the case for you?

[@nathanksmith2]

why would the seller want to agree to a 3% seller finance rate if the market was getting 6.5% to 7.50%?

[@IbrahimOyegbola]

Does the 50% include the Mortgage and etc?

[@CoachChadCarson]

@@IbrahimOyegbola estimate of all the expenses except the mortgage

[@Thom_Yorky]

Interesting house example that you're using in this video. The Zillow Zestimate on that house increased 85K in 6 months?

[@CoachChadCarson]

Zestimates fluctuate sometimes. Not sure why in this case.

[@leeroach3381]

Very helpful Thank you for sharing

[@greengil]

greate video very helpfull

[@es892o]

Great video. Already shared with a few would-be investor friends

[@CoachChadCarson]

Thanks for sharing! That's the biggest compliment you can pay me!

[@mohandevbhandari3665]

I enjoyed the video. I downloaed the calculator excel spread sheet. It looked like a blank sheet with no data or formula in it. It was completely unhelpful for me. Am I missing something? Thanks

[@CoachChadCarson]

Something doesn't sound right. The spreadsheet has a lot of formulas and is just like the one I used in the video. Did you try this link to download it: www.coachcarson.com/rental-property-calculator-spreadsheet/

[@CoachChadCarson]

Make sure to use tab 2 where the formulas are. Works best if you save it on your computer or Google Drive and manipulate from there.

[@KidCity1985]

Thanks Coach, this was a great video.

[@CoachChadCarson]

Thanks for watching!

[@carolinaserna818]

As long as u look at buying in any state you can find good deals major coties is harder

[@AllNighterHeider]

Thanks Coach

[@CoachChadCarson]

thanks for watching!

[@claudiovallone9217]

I like you dont minimize repairs and capex. Those can be very expensive

[@CoachChadCarson]

School of hard knocks!!

[@tnorth7090]

IN CANADA YOU HAVE TO SPEND 400K FOR GARBAGE HOMES. LOTS ARE 300K EVERYWHERE

[@CoachChadCarson]

yeah, prices are high relative to rents in parts of Canada and big cities in US.

[@priceandpride]

But it’s Canadian dollars so still not as bad as the coasts in the US

[@Hawk2phreak]

​@@priceandpride not really how that works.

[@tannisjohnson6456]

Not all parts of canada are that expensive

[@JamieVictorCharlesWisema-fv1pg]

good

[@princea5363]

Who has 60k for a down payment... I must be watching the wrong channel

[@CoachChadCarson]

I had to partner with others to get started. I didn't have $60k (or even $10k). Nothing wrong with having 50% or even 10% of something instead of 100% of nothing. There are plenty of people out there with money who'd partner with you if you find good deals and demonstrate they can trust you.

[@windhunter.89]

Then save, you expect people buy house like groceries item?

[@milkncookie]

If you have a deal, it's very easy to get OPM and private sector investors.

[@yoannybatista4202]

We Spent a few years putting little pebbles of money into a 401k and Roth IRA through ups and downs with company matching (free money) and then borrow from it tax free towards real estate down payment. Even 1% over time is better than nothing to show for it. Read “the richest man in Babylon by George S Classon.