Nate Hedrick and David Bright do a deep dive into real estate investing spreadsheet analysis, covering how to analyze a property with different angles, strategies, and methods.
Key Points From This Episode
- The advantages of a simple starting point when investing.
- Highlights of the current success of the 'None to one' course.
- The focus of today's episode: financial planning for real estate investing.
- Nate tells us about an interesting investment in the Cleveland area.
- What the 1% rule is and why to consider it when investing in property.
- The common misconception regarding the rental and mortgage of a property.
- How to calculate your mortgage based on the principle and the interest.
- The incorporation of property taxes and insurance into your expenses.
- What Nate regards as negotiable expenses.
- Property management rates as an expense and what they are based on.
- Why it is important to account for vacancy as an expense.
- What repairs and capital expenditures are.
- Examples of unexpected fees in the property sector.
- How to manage cashflow and why it is important to have reserves.
- Some of the upfront costs to factor in when buying a property.
- Cash on cash return and how to calculate it.
- Aspects to consider when making an investment.
Links Mentioned in Today's Episode
