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The video discusses the importance of knowing your numbers when evaluating real estate investment properties. The speaker emphasizes that understanding your numbers can help you determine whether a deal is good or bad, and can save you a lot of time in the long run. He provides a simple five-step process to get your first rental property going in 30 days or less. The first step in the process is to see if the property will cash flow using the one percent rule, which states that the rent should be at least one percent of the purchase price. The speaker also discusses the importance of understanding the expenses associated with owning a rental property, including real estate taxes, insurance, and vacancy costs. He suggests setting aside money each month for these expenses and emphasizes the importance of setting aside money for vacancy costs, repairs and maintenance, and property management. The speaker calculates that with the rent of $2,000 per month and expenses of $1,590 per month, the landlord should expect to make a net positive cash flow of $5,000 per year. He also explains how to calculate the cash on cash return and notes that there are other benefits to investing in real estate, such as property appreciation, mortgage paydown by tenants, and tax benefits. Finally, the speaker provides a bonus tip that you don't have to use your own money to invest in real estate and encourages viewers to check out his video on the BRRRR method for more information.
The video discusses the importance of knowing your numbers when evaluating real estate investment pr