95% of the success in real estate is understanding the math. So many times I get people asking me if a certain property is a good investment. Basically, they are waiting for my blessing. This is a TERRIBLE strategy. You need to be able to understand this for yourself, or you will be pushed into a bad investment by someone you trusted. I see this happen to people all of the time by online “gurus” only trying to get low dollar investors.
It all comes down to your cashflow.
Income – expenses = CASHFLOW
In this video, Click here to watch I am going to show you how to look at a Zillow listing and decide if the property is cashflow positive or negative. Obviously, I want you to dig into these numbers and verify the rent and expense numbers, but start with just the basic calculation. If the numbers don’t work on the initial calculation, then it is not worth your time. If the numbers do work, it is time to move into due diligence and verify the rental and expense amounts. FYI in this hot market, most listing don’t work. That is why it is up to you to always look at the new listings and run the numbers daily.How to find out if a property cashflows in minutes