On this episode of Masters of Real Estate, licensed CPA and full-time real estate investor Matthew Owens teaches listeners how to quickly analyze a multifamily deal in under 10 minutes. Owens emphasizes the importance of considering new property taxes and insurance based on one's own basis and needs. He cautions against relying solely on the seller's financial projections or insurance coverage, and encourages using one's own estimates for repairs allowance. He also stresses the importance of a more detailed due diligence involving comps and backing up key numbers before making an offer. Owens explains that the total cost of investment includes purchase price, renovation costs, 10% interest, 10% buffer room, and closing costs. He introduces listeners to the concept of cap rate, calculated by dividing net operating income by total costs, and explains how a higher cap rate means higher return on investment. Owens offers insights on financing, including leverage that make sense and analyzing market rents. Throughout the episode, he provides a quick and dirty method to determine potential net income on a property, which can be supplemented with a more detailed analysis. Owens provides a comprehensive overview of analyzing multifamily properties and gives insights on key factors for consideration.
Make sure to follow Matt on social!
https://www.instagram.com/mathew_owens1/
https://www.facebook.com/mathew.owens2
