How To Make Any Rental Property Cash Flow Before You Buy It | Bigger Pockets Video

Episode #1166

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We’re going to show you how to make any rental property cash flow as soon as you buy it. Want to know how to analyze a rental property like a pro? This is how. Expert investors don’t just crunch the numbers once and submit an offer or reject it—that’s an easy way to miss out on the best real estate deals. Instead, we’re showing you how we tweak specific numbers in your offer to make the deal as profitable as possible, while giving the seller many ways to say “yes.”

Today, our friend and fellow investor, Ashley Kehr from the _Real Estate Rookie_ podcast, brought us a real deal she’s debating on buying. Here are the quick numbers: it’s a triplex (three units) being sold by a tired landlord. The price seems reasonable, but the expenses may be too high. We use the BiggerPockets Rental Property Calculator to run the numbers and see if it cash flows, then tweak the offer in multiple different ways to boost the returns substantially.

Now, Ashley is taking these offers to the seller. Yes, offers—plural—to see which one they’ll choose. Either way, Ashley is in a position to make more money from this rental than before, and all she had to do was get a little creative. Today, we’re showing you, too, how to make any real estate deal cash flow.

0:00 Intro
1:16 Triplex Deal Details
5:05 *Light* Renovation Plans
5:52 Estimating Rents
7:35 Sponsor: Baselane!
8:31 Estimating Renovations
9:26 Analyzing the Rental
13:06 Choosing a Rental Loan
17:07 Expenses and Projected Rent
20:40 Will It Cash Flow?
22:41 Seller Financing Option
28:47 Ashley’s Final Offers