How to Quickly Analyze an Investment Property

How to Quickly Analyze an Investment Property Investment properties are everywhere. Hundreds, thousands, maybe tens of thousands (depending on where you live.) So, obviously, it’s impossible to go an look at every single one. So how do you choose which ones to look at, what to spend your time analyzing, and how the heck do you even analyze it?

I’ve had a few questions lately about how I analyze an investment property – so today I decided to make a quick video showing exactly how I do it. This is not a comprehensive analysis, but just a quick, 5 minute look at what kind of income the property will provide, based on the income, the expenses, and the 50% rule. This property is an actual property, currently listed for sale in my town – so this is about as real as it gets! Check it out, and let me know your thoughts below in the comments. What would you offer on this property?
Video Rating: 4 / 5


  1. Bridden says:

    I have a question. He does say that half of the income goes to expenses,
    and what is left goes to the mortgage and cashflow… but that would imply
    that he would divide BEFORE he subtracted the mortgage, not after. This
    does make a difference, and was wondering if this was just a mistake. 

  2. Bradley Murphy says:

    Great love being able to see it done

  3. Raju Gurung says:

    How accurate is the 50% rule?

  4. Amazing Goddess says:

    very useful info! You all at biggerpockets are so helpful :) In my area
    which I rent to, it’s considered a high crime, low income area, one tiny
    bedroom STARTS at $600… Good old New York, NOT…lol

  5. John Vandivier says:

    excellent quick vid bud!

  6. Martin Cortes says:

    Hey Brandon great video big fan of you and BP. Do you have a spreadsheet on
    how to do this quick analysis? I would really appreciate it. Thanks. 

  7. Andrew Son says:

    Why don’t you add taxes?

  8. Darryl Hill says:

    Why 50% rule, seems high for expenses?

  9. Roobeous728 says:

    Great information however in order to be accurate one must always
    calculate in all expenses and leaving out taxes & insurance in the
    calculation makes that $335 not realistic.

  10. thesenior1228 says:

    Did you find all of that information straight from the MLS?

  11. BiggerPockets says:

    Yes, that and the local county assessors website.

  12. BiggerPockets says:

    Thank you! :) “King if” – I gotcha!

  13. mark meloney says:

    I cant believe all of this information is out there.. all i had to do was
    look for it

  14. Jeremy Smith says:

    Great vid, actual info on this nice one. Is there any more detailed / other

  15. ACEKING130 says:

    what is the website you used to view this properties general, listing,
    financial and unit information?

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