From the course: Real Estate Analysis Foundations
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Back of the envelope analysis - Microsoft Excel Tutorial
From the course: Real Estate Analysis Foundations
Back of the envelope analysis
- So if you've done at least three properties for each part of this exercise, you're going to have a very good feel for what the rental market is like in that particular neighborhood right now. What those potential rental income properties are listed at, what they've been selling for, and what kind of rent they are likely to be able to ask for. Now that you have that, you should pick one property to analyze. In my case, when I looked at the three bedroom, two baths comps, most of them looked pretty crappy. There's one that was okay but this one's listed at $169,000 and I have one in the same neighborhood with an extra bedroom that's slightly larger listed for less that looks better. I'm going to run an analysis on that property instead, okay? So this one, $165,000 is the asking price. When we looked at recent sales comps, we noticed that there's really no discount or premium right? So let's assume we would have to pay listing price for it. This is where we go, to the BOE model…
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