BiggerPockets Real Estate Podcast

6 Numbers You Need to Know Before Buying a Rental Property


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There are six numbers you need to know before buying a rental property. We run these numbers before we buy any investment, and knowing all six gives you the highest chance of making money instead of purchasing a headache. 


We’ll give you the full list of the six most crucial real estate numbers and how to calculate them so you get the highest return possible. Most new investors skip over most of these, and it costs them—big time. But calculating these in advance lets you know whether you’re buying at the right price, how much you can later sell your property for, if your rents will be high enough for you to cash flow, and whether the deal is even worth holding on to.


Plus, we’ll throw in a bonus metric you can easily calculate that quickly shows you whether a rental property, fix-and-flip, BRRRR (buy, rehab, rent, refinance, repeat), or any other deal is actually worth the effort you’re going to put in. 


In short, if you know these six numbers, you can confidently make a move on that first or next investment property. 


In This Episode We Cover

Do NOT trust the list price! How to tell if the property you’re buying is overpriced, underpriced, or just right 

The one thing every real estate deal must have for Henry to buy it (it’s not cash flow)

How to price rent (the right way) and ensure you’re going to cash flow 

The single most overlooked expense that can ruin almost any real estate deal 

Stop trusting "cash flow." This metric works much better at calculating returns 

And So Much More!


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