THE BEST SYSTEM TO RUN THE NUMBERS ON A RENTAL PROPERTY
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- čas přidán 25. 08. 2024
- This video breaks down the best system to run the numbers on a rental property. It shows the system I used to get a 29% return on a duplex that I purchased. However, It was made to show the best system to run the numbers on any rental property. It shows how I have increased rents over that time period and how that has affected my cash on cash return and CAP rate. I explain everything starting with the purchase price and going through rents, expenses, utilities, taxes, insurance, and everything else required for a buyer to make an educated decision on an investment property. This video not only shows you how to run all these numbers, but it also includes a link to the exact spreadsheet that I use so you can run the numbers for your own properties.
CDS REAL ESTATE INVESTING COURSE
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To download the spreadsheet go to
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I have read several real estate books, watched hours of CZcams videos, and listened to many podcast; none of which broke down the numbers like this video!!! Absolutely loved this video and am grateful you were willing to include the spreadsheet you use to analyze numbers!!! Keep up the good content!
Jacob ingledue thank you so much! So glad you enjoyed it!
Check out Bigger Pockets
Yes, this was a really good video. I’ve watched bigger pockets, and Graham Stephan too (I like all these channels) but honestly I feel like this video here was most informative of all. It’s not as “fun”- it involves actual math, lol- but it’s the most useful video
most investors ive talked to and I ask these questions arent transparent. This guy just answered all my questions and backed it with numbers. Thank you! best wishes to all!!
I think this probably top 5 videos on real estate investing I’ve seen, and I’ve binged a lot. Thanks for putting in all the time and effort to share this information!
KiinGDolo thank you so much! That really means a lot!
Hard to find someone thats as honest with their numbers as this. Living in a similar area i can see that these numbers are completely reasonable.
Thanks, the spreadsheet works great!
Thomas Siswick thanks for watching! Glad you enjoyed it! Let me know how I can help!
Finally not just "positive thinking" crap, but real numbers in real markets. Thank you so much for the spreadsheet!
Came here because of meet kevin. Stayed/subscribed for the content quality.
Johnathan Cody thanks so much! Means a lot!
I know it’s a good video when I run it back to hear it again instead of have to skip forward through some bullshit! Thanks for the info man!
Mia Navarro that’s awesome! Thank you so much! I’m glad you enjoyed it!
This is probably the most succinct and clear breakdowns of a property I’ve seen! Thanks for sharing this Chandler!
Craig Rider thank you! Thank you for watching!
It's so easy to look at a prospective investment property through rose tinted glasses. This video and your spreadsheet are a great reality check that everyone should take.
David Shields thanks! That means a lot!
Just downloaded the free spreadsheet! This makes it all seem less intimidating to me when it's all broken down. Thanks!
Payton Smith thank you!
How did you download it? When I click on the link it takes me too the main page.
This is a great video for anyone who wants to get into this business! Your spreadsheet also serves as a good checklist for things to consider. I've done an analysis like this a few years ago, thinking about renting vs selling a house I was moving out of. I came to the conclusion that for just one house, the stress and uncertainty outweighed the benefit of a couple of thousands of dollars in profit per year assuming everything goes to plan. One thing I see don't see discussed on channels like this or Kevin's is how the margins are so tight that it incentivizes very cheap, low quality materials to be used in any repairs or upgrades. This is especially true if you've got mortgage payments on the property. That old home of mine had some nice flooring and hardware, and if it got run down by the renters the margins I was making would force me to replace any wear and tear with something not as nice as it was originally. I've seen this happen to other homes in the same neighborhood that turned into rentals. This is why HOA's don't like rental properties in their neighborhood.
You and Marko-WBF are the real deal! Don’t change dude, you’re making the world a better place
Ryno Throwton thanks so much man! That really means a lot!
I found your CZcams channel through MeetKevin. Great content and killer spreadsheet!
Shinwon Moon thanks so much! Kevin is the man! Thanks for watching and commenting!
Me too!
Butterfly J thank you!!
This video is great! Thank you for being very transparent and Going over all of the details. I have never seen a video quite like this on estate investing. No glamour, no bells and whistles just analyzing. !
Awesome video, Chandler! It's good to see people breaking down affordable real estate investing with real numbers, not hiding anything. Keep it up!
Till do! Thanks so much!
Appreciate the candor and honesty of your channel. No need to change, man!
Great content and thank you for the free breakdown. That's why you're winning sir.
Jonas Baas thank you! Glad to help!
0:23 absolutely correct no one is such honest
Something magical just happened, I found a singe youtube channel that answered all my questions about rental investments in 4 videos. Thanks for the straight to the point style, wow
Great job Chandler. Appreciate your straight forward and clear explanation. Lot of “Guru’s” on the web with all different schticks. I appreciate your approach. You aren’t selling anything, which is truly a relief. Thank you.
This channel actually seems pretty legit and full of information compared to a lot of the hot garbage out there
Not sure I agree that purchasing rentals with cash is so bad. There are several good reasons to own free-and-clear. For one thing, if you experience a number of vacancies, the mortgage(s) may be tough to pay while you are doing your reno with no/little cash flow. And one bad eviction can take the entire profits of a rental for the year. It really depends on how many additional financial resources you have and your personal risk tolerance - especially in the early phases of building your portfolio.
Excellent video and spreadsheet! Thanks for sharing. Look forward to more great content.
moviecook thank you so much! Will do!
I just stumbled upon this video and I just want to say thank you so much for doing this!!! I can't wait to use this to run my numbers as I am getting ready to buy my first rental property. Cheers, mate!
Kazi Islam thank you! So glad that you like it!
Nice video Chandler. I feel more confident and purchasing my first property. I don't know why it is so scary for me even with VA benefits hopefully with my newly found grit lol shall be on the move
Amazing content, truly impressed by the transparency.
Wayland Sejour thank you! Glad you enjoyed it! Thanks for watching and commenting!
This is honestly amazing.
addiedas-Adrien Salvador thanks so much! I’m happy you enjoyed it!
Honestly, I prefer this vid over watching Kevin talking smack about cordone or clickbaiting etc. Great content Chandler!
Frenchy Alicea thanks man! Means a lot!
@@ChandlerDavidSmith I invest in real estate as well, one of my sweetest deals generate 25% and was a total find. I'll be checking out your vids, keep it up.
Frenchy Alicea congrats man! That’s awesome! Sounds good! Thanks!
Hey I just started watching your videos and I wanna say I’m impressed by your honesty. I am currently 20 years old and would like to start investing in real estate I would like to know when exactly should I hire a property management team. Also how do you deal with bad tenants.
Wow, thank you so much to share your knowledge & experience like this, super cool!
Thank you!
Really like the video content. Have watched several of your videos now and my only advice is to watch it at 125% playback speed! Not a knock on you at all just helped me stay engaged better
Chandler, you are truly the BEST!!!!!! I thank you from the bottom of my heart!!!
I liked the video and subscribed, looking forward for other great stuff :)
Glad to have found you now before buying! Thank you 😇
Just downloaded! Can't wait to put it to the test!
Love this! Very easy to understand and Straight forward
Great content.
This is great! I randomly came across your channel and have subscribed! I truly APPRECIATE all the information you're providing, including the free spreadsheet! I want to start investing in real estate, so I am soaking up information. I plan to watch all your videos. Thank you!!
Real teacher
Thank you!
Those numbers seem ridiculous in the Australian market, but bloody hell thats a cracking spready
Cheers mate 👍🏼
This was super helpful, can't wait to check out the app and the spreadsheet. Thank you so much.
Very informative! Thanks for breaking this down, Chandler. Had to subscribe after watching this.
I am currently in a deal and this has helped me so much with my confidence. This was exactly what I needed. Thank you so much for this. L&S'd.
Get the app: DealCheck it’s way better
Awesome! Tons of value
Tim Bearden thank you! Glad you liked it!
Love this video , Great job Chandler.
Chandler! Could you do a video on running the numbers on an apartment buildingv
This is a game changer for me. Thank you!
Great videos, great explanations, and great attitude!
Btw, who’s the 1 person that goes through and dislikes your videos? Haters gonna hate.. smh
Zack Bee thanks so much! And ya! Hahaha wish I knew who that gypsy was!!
Another great video. Thank you.
It all makes perfect sense! Thank you for that.
Excellent video,...super high yield!
Likes, subscribed, and downloaded :) Super excited to learn!
CfomodzGaming thanks! Glad you enjoyed it!
Thanks Chandler. Appreciate it!
hey chandler
awesome work, can you do one for condos?
The house with nightmare tenants?
Another great video thank you.
Great video!
Madalyn Smith thank you! Thanks for watching!
Great stuff! Thank you
This is awesome man!
Alex Smith thanks so much!
Chandler you are the goat
Haha thank you!
This is fantastic, thanks so much.
Here by accident. But this is cool. As I’m getting set up for my next place.
Thank you .. from Turkey .. of course I have to work with local currency things are more diffucult ... ı have to guess USD values in future to have excel sheet to work :) will find out if investing for rent is a good deal overseas or not and let you know when I work it out .. I made lot of projections in the past for USD investments in Turkey so hopefully it works here as well .. All the best
Cihat Cicek best of luck! Glad to help!
I love your channel!!!!
YOUNG CEO CLARK thanks man!
Is the insurance number per month or annually?
i have the same question
Great video
Bearded Mutt thanks so much!
Awesome content
Dan Waskey thank you!
Hey just wanted to say that I downloaded your spreadsheet 5 months ago and it really helped me find deals faster. I'm on my second deal this year. Thanks!
PS. Your for sale by owner video was also really helpful. Can you do one on LLCs?
Manny Kings thanks so much! That’s awesome! It gets me pumped that it has helped you! And yes! I need to make that ASAP!
Do you have to pay for they course to download the spreadsheet? The spreadsheet url takes me to the course?
I don’t see the amount for repairs to make it ready included in the expenses. Assuming you get a loan for this amount, where would you add this expense? Great worksheet, thank you!
I like your spreadsheet. My one question in using it. To determine the net operating income (NOI) your spreadsheet calculates it AFTER subtracting the annual taxes (i.e. NOI is an after-tax figure). This results in a much lower cash-on-cash. Is this the general way of calculating NOI or should it exclude the annual taxes (i.e. in that case it would be 0, NOI is a before-tax figure) such that it would result in a higher CoC. Thoughts?
Like your video great content but wish you could make your spreadsheet bigger so I see it when your going over it. It's hard to see when watching with a phone.
I gotta move. Multi Fams are being listed at 3.5% cap rates hour outside of Vancouver. Feel like Id be better off finding a fund that invests in markets like yours..
Nice 👌
Hi Chandler. Thanks for the video. I am filling out the sheet and I have a question. Are the numbers for Insurance and Taxes annually or monthly?
You can’t even buy a shed for $89k where I live. Just bought a duplex for a million. Boston real estate market is bulletproof though.
If you're buying a 4plex with an FHA loan, do you include the potential 4th rent when running these numbers even though you'd be living in 1 unit? The C on C return is negative with only 3 units rented out, but cost of living wise is much lower still than renting in my area. How do you personally take this into account? Thank you very much for the informative breakdown!
when i run the same numbers between the sheet and the app, it doesn't produce the same C on C...
CHANDLER if I bought a house I should rent it out first then put it for sail right I'm 16 years old and I'm trying to get as much info about investing real estate.
Hi Chandler! Thanks so much. So what I've struggled with and I will try to analyze this spreadsheet more and research the terms but there are a few things that I didn't fully understand. 1) Some expenses are one time expenses. I guess these are the initial investment--the cost of the property and any renovations done on the property. I'm at a lost as to how one-time expenses factor into a yearly return. 2) What are Cash-on-cash returns used for. What do they tell you? What is an ROI. Why is it different from Cash-on-cash return. I know this is beyond the scope of this video, so i need to do more research. I understand how monthly and yearly fees count against your yearly income. I'm not sure how one-time costs factor in. Thanks!
K Stevenson The one time expenses at the beginning or count as an initial investment. This number is used so you can see your return. Cash on cash return is one of the ways you look at what your return is on your initial investment. Hopefully this helps.
Chandler! Using your excel sheet now...are the insurance and taxes amounts per year or per month? Thanks!
Yearly
@@ChandlerDavidSmith thank you!
The spreadsheet was not found on your website, just a course to purchase. Does one need to purchase the course to get access to the spreadsheet? You did not state that in the video.
I'm curious about the raising of rents. I totally understand the business side of that, but how do you navigate the ethical issues around that? I want to start getting into this but I'm concerned about that.
Based on your scenario, the hard part is looking for tenant willing to pay 4 times your mortgage which is ridiculous imo lol
Kindly note that NOI is calculated wrong. Supposed to be Income - Expenses, but in spreadsheet it adds Income and Expenses
It’s done correctly but you have to make sure the expenses are a negative number and have the brackets around them.
So I have to buy the corse for the spreadsheet?
Real estate investing seems like a full time endeavor. If you want a deal you basically have to buy in a low income area which increases risk or you have to buy and flip a place which cannot be done with a full time job unless you work in the construction business. Just my experience after trying to find a place to buy rent out for the last 5 years.
Hey Chandler. Thanks so much for sharing. We're in the first stages of getting a loan for a duplex and this sheets is very helpful. I only have one question, we plan to live on one side of the unit. When just accounting for the rent on the other side the C on C return goes negative. Should I include our 'rent' as well? How do you account for that?
Iglesia Biblica Amistad I would run the numbers at what you can rent it at when you leave. That way you know it’s a good investment even though you might not be cash flowing why you are living in it
Who do you go through for your home insurance or who do you recommend
thatcoolkidjoey I use a guy a farm bureau. He is and active real estate investor. I suggest finding an agent who invests in your area
@@ChandlerDavidSmith I agree with the concern. Insurance makes or breaks most of the deals I analyze for CoC. Most YT video glance over this. I think it should be emphasized much more by everyone provided REI content.
You got the sub for this.
Hey Chandler, I love the spreadsheet but one thing is confusing. It seems that income is monthly, but the expenses are yearly, right? So the number I put in in the rents cell is monthly rent, but insurance would be the yearly payment?
Correct. Sorry if that’s confusing!
@@ChandlerDavidSmith so that makes cash flow yearly.
John F. Hebert yes
Hi Chandler
i have going through a lot of videos and websites and NO ONE have done what you have done in this video.
I really love how you explain and share your spreadsheet.
as you can tell i'm new to all this investment thing.
what would the next video that you have and comment to watch for the next step went purchase a piece of property.
Thank You!!!
Edder Gomez
Edder Gomez thanks so much! Means a lot! Have you watched the video on building your team?
Where does the $7,120 amount come from? and how do the %'s next to them change the numbers?
love it!
Are you using this method for the brrrr method as well?
now that i think about it im very confused is the expenses monthly or yearly
After running the #'s on a bunch of properties I am getting negative returns. So I guess this is a bad time to invest
B8 DOWN PAYMENT is spelled wrong
I understand running the numbers, the problem I'm having is location... There's plenty of houses with great numbers in the hoods of Milwaukee, but that comes with obvious problems and I know I don't want to own those properties, but how do I put dollar values on locations? How do I account for poor crime rate when evaluating whether or not a property will be profitable? Any help is greatly appreciated.
This was years ago… rent now is 4 times as much and prices on 🏡
Where is the spreadsheet? All I see is buying the coarse.
Now you got an APP!!