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Your Financial Pharmacist

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YFP Real Estate Investing 50: Deep Dive Into Spreadsheet Analysis

Mar 26, 2022

Nate Hedrick and David Bright do a deep dive into real estate investing spreadsheet analysis, covering how to analyze a property with different angles, strategies, and methods.

Key Points From This Episode

  • The advantages of a simple starting point when investing.
  • Highlights of the current success of the ‘None to one’ course.
  • The focus of today’s episode: financial planning for real estate investing.
  • Nate tells us about an interesting investment in the Cleveland area.
  • What the 1% rule is and why to consider it when investing in property.
  • The common misconception regarding the rental and mortgage of a property.
  • How to calculate your mortgage based on the principle and the interest.
  • The incorporation of property taxes and insurance into your expenses. 
  • What Nate regards as negotiable expenses.
  • Property management rates as an expense and what they are based on.
  • Why it is important to account for vacancy as an expense.
  • What repairs and capital expenditures are. 
  • Examples of unexpected fees in the property sector.
  • How to manage cashflow and why it is important to have reserves. 
  • Some of the upfront costs to factor in when buying a property.
  • Cash on cash return and how to calculate it.
  • Aspects to consider when making an investment.

Links Mentioned in Today’s Episode