How to Buy a Rental Property | 4min snip from BiggerPockets Real Estate Podcast

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BEFORE You Buy: How to Know Your Market (and Property) Will Make it In 2023 w/Dave Meyer

BiggerPockets Real Estate Podcast

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CHAPTER

How to Buy a Rental Property

When you look at the cash on cash return, it's about 4%, which I'd say is average. But when you looked at the annualized return, this is your ROI. 16% is actually really, really good. It's almost double what the stock market returns. Not all deals are going to be a good deal but if you work out some of them, they can be better than others.

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Is your market worth buying in? With the economy on shaky footing, now ISN’T the time to guess. And once you find your investing area, how do you ensure your rental property will profit? Even in 2023, when cash flow is low, and home prices are high, it doesn’t take long to determine whether a rental is worth your money (or time). And, if you’re still trying to get your FIRST real estate deal, odds are you’re probably spending HOURS finding deals and crunching numbers. So let’s speed up the process.

In this webinar bonus, Dave Meyer, BiggerPockets VP of Data and Analytics and On the Market host, will walk through EXACTLY how to analyze a rental property in minutes, the tools he uses to calculate cash flow, cash on cash return, and more, and how to know whether or not a real estate market is worth investing in. With mortgage rates rising and affordability at historic lows, Dave was STILL able to find a property that produced positive cash flow. So, if Dave can find a deal like this, why can’t you? Stick around to learn how to calculate rental property profits in MINUTES and which markets are worth the money.