00:00Here's how to tell if this property you see online will be a good rental.
00:02I'm giving you all the details to save this for later.
00:05Get the house you want on Zillow, jot down the purchase price, HOA fees, and the property taxes.
00:10Now take the price and multiply it by 0.8 to get your loan amount.
00:13Then head over to Google and type...
00:15and mortgage calculator.
00:16What you're looking for is your monthly payment.
00:18Then you go to Rental Meter and figure out...
00:20what the rent will be for the property.
00:21Each unit will be $900, and so you double that, and that'll be...
00:25about $1,800.
00:26Then you open up a spreadsheet like this.
00:27You enter $1,800 for the rental income.
00:30You enter the home price here, put about 5% for closing costs on the house, 20% down.
00:35You're going to have a 7% interest rate.
00:37You enter the property tax amount, about $1,500 for...
00:40home insurance, 5% for repairs, vacancy, and CapEx.
00:43These are things you put to the side in case you're something...
00:45goes wrong, you put 10% for management, your expenses are $1,435 every month.
00:50and your income is $1,800.
00:51So you'll make about $364 a month with the 13.5...
00:5549% return on investment.
00:56But here's a trick on how you can save thousands of dollars...
01:00using a software called PropStream, which I got a free trial for all of y'all.
01:04Comment the word...
01:05PropStream, you head over to PropStream, copy the address, enter it in.
01:08So what we're going to do is see if...
01:10we could find information about the mortgage that the owner might have.
01:13Seems like they bought it...
01:1510-16 with cash.
01:17So they have no mortgage on the property.
01:19We have...
01:20all this information about comps that we can use, any information about liens they might have.
01:24So they bought it...
01:25cash three months ago.
01:26And so we know that we could probably offer a little bit lower.
01:29So if we offer...
01:30$115,000, they might take it and that'll increase our profit almost $100 a month and...
01:35increase our return on investment.
01:36These are the tricks that investors know using things like PropStream.
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