New Deal Worksheet: Analyze Rental Properties Faster!

本站添加: 2026-06-01

[00:00:01]All righty folks, we are about to see something for the first time. You're going to be the only folks that have seen this kind of top secret stuff. And we want your feedback. The folks at Rentometer are starting to release some brand new features and they are bringing them to the O Ret family first. Mike, thank you for doing this, man. We're honored. Uh, what's been going on?

[00:00:22]>> Uh, thank you for having me.

[00:00:24]Um, >> [clears throat] >> we continue to work on new tools and new ways for our investors to lev- um, sorry, our customers to leverage our data, analyze deals, and just generally feel better about the decisions they're making and and how they can move faster and and with more confidence.

[00:00:42]>> Yeah, when I think about all the conversations we've had, Rentometer is kind of that metal detector for me. It kind of it kind of helps you understand where where something might be. Right?

[00:00:52]It gives that beeping sound like, "Hey, dig here deeper, right? See what you have." Sometimes you find gold and sometimes you find a bottle cap. But that's on the investor to do the the deeper dive. But, you know, I didn't have a metal detector when I was starting. I was scrambling and freaking all over the place. So, having having Rentometer there to be that metal detector has been really, really cool.

[00:01:13]So, as I understand what we're about to take a peek at is you've obviously already helped us a ton with single family homes. We've talked about it half a dozen if not a dozen times on this channel.

[00:01:24]But, you took it as a challenge to go out to what I'll what we'll just call multi-family.

[00:01:33]And take on the challenge the of a different beast. So, why don't you talk about what you had in mind when you took on this challenge? Why don't you kind of give us the lay of the land and then we'll we'll bring it up and show folks.

[00:01:43]But but why multi-family?

[00:01:45]>> Yeah, that's a great setup because we we really started um moving upstream into helping investors find deals and then evaluate them quickly. And again, it's all powered in the background uh by our our rent database. And so, we developed the Yield Tracker, which helps you find deals, and then we said, "Well, it's not too much of a turn to add a deal worksheet where where you can take a deal that you just found and go further with it, analyze just do a quick uh cash-on-cash return." We're not trying to give you your final analysis decision-ready analysis. We're trying to give you the litmus test. Do I even want to spend any more time with this? Yes, it Yes, it has a great uh gross rent yield, but what does it look like on a cash-on-cash basis? And so, we did that for the for the single family, and that's really where we put a lot of energy. But, having attended a lot of conferences over the last 6 months and listening to real investors, there's this kind of bleed or natural evolution when you start with single family, you know, you you you preach it, get your first deal under your belt, and get another one, you know, in due course.

[00:03:00]But, then maybe you want to look at a multi and and move up a little bit. So, there's this natural progression for a lot of our customers, and we wanted to just really stay aligned with that. So, it looks funny to have a single family deal worksheet, but then I want to look at a fourplex or a six-six or or a 10-unit building, and I can't use the deal worksheet anymore. So, we just said, "Let's put the Let's [clears throat] add this incremental." I wouldn't You could certainly do a large deal on this. I think you better be I think you you should be careful how big a deal you do it, right? So, when I I'll highlight some of the not limitations, but where we think it's appropriate.

[00:03:43]>> Well, I I you know, I just think there are some some you know, I just think about our own personal experience, right? We We did We did residential, which was singles to four-plexes for the first five or six years, and then we got a five, and and five's not that much different from a four, but it is on a lending perspective, because you jump into the commercial.

[00:04:03]And then we did a we did a 10, Olivia did a seven.

[00:04:07]Uh I think the biggest we ever did was a 20. Uh but then, you know, there are people doing, you know, 100, 200, 300. I just got to tell you, if you're playing at that game, it's it's different.

[00:04:17]>> It is.

[00:04:18]>> and and, you know, you've got to look at it, but uh I look forward to seeing what you guys have done, cuz I I know firsthand that a single versus multi is different, so Want [clears throat] me to bring it up?

[00:04:29]>> Yeah. Yeah, let's take a look at it.

[00:04:31]>> Here we go.

[00:04:31]>> So, again, what what we're trying to do here is cut people through some of the work, the extra work. Um normally, if you're evaluating a deal, you'd go to our system, you'd run it, you'd get the rent data, and you would take it to a spreadsheet, put it in the spreadsheet, manipulate the spreadsheet, and then get to your answer. So, we said, "Well, wait a second. All that spreadsheet stuff is pretty programmatic. We can we can set that stuff up." So, we did it for the single family. So, now we said, "Okay, let's do it for the multi." So, here's the UI, right? And the single family is here, so that nothing's changed there, you can still do single family. But now we've added the multi.

[00:05:10]And so, let me just show you a property that I found.

[00:05:14]This is a uh a five-plex that, you know, I just wanted to use it. It's pretty simple, pretty straightforward deal. And so, it's a good example, doesn't get too complicated. Um so, if I go back to the multi-family deal worksheet, uh let me just find something on my screen real quick.

[00:05:35]>> And again, folks, as he's looking for that, remember, we're looking for your feedback. This is just being released into the wild. You guys are the first to see it. So, this won't be perfect, uh but it is usable, it is helpful now. So, again, if you had feedback, thoughts, leave comments below. We will get them to Mike.

[00:05:51]>> Yeah, thank you for that. I I use all I use all this stuff. So, if I find that it's not ready, it doesn't go. But, I've I've gotten enough out of this that I um can I think it's I think it's worth letting some real >> Yeah.

[00:06:05]>> live people >> Love it.

[00:06:07]>> knock knock up against it, right? So, um I'm going to put the deal info in, so it's uh >> [clears throat] >> uh Akron Street, Aurora, Colorado. So, there it is. So, the price on the property was 650,000.

[00:06:22]>> Mhm.

[00:06:23]>> Um so, here's where it um it gets interesting, right? Cuz in a in a single, it's just one unit, right? So, you just go get it, right? Here, what we want to do is give you the opportunity to put in different unit types. And I'm going to I'll walk through I'll walk through two examples, right?

[00:06:40]>> Mhm.

[00:06:40]>> The first example, I'm just going to treat it straight up face value. So, I I have a unit description. So, there's four one bed, one bath in this in this property. So, >> Got it.

[00:06:50]>> I I'll just call those one ones. One one um bathroom, one bed I'm sorry, one bedroom, one bath. And there's four of them, right?

[00:06:59]>> Okay.

[00:06:59]>> So, now I'm going to add the second unit, right? So, this is where it starts to veer from the single family.

[00:07:05]So, I'm going to call this a two one, right? And I'm going to it's two beds, one bath.

[00:07:10]>> Yeah.

[00:07:11]>> And there's one of them, right?

[00:07:13]>> Got it.

[00:07:14]>> So, the first thing you have to do with a multi, which again is a little different than with the single, calculate the GPR. What is the gross potential rent for this property?

[00:07:24]>> Mhm.

[00:07:24]>> So, um this screen here, this piece here is going to go away, so uh I won't even mention that. So, basically, I've got the GPR for the property. It's uh 5880.

[00:07:35]We used our database to go get those rent values. Um but, you can adjust the rent values. If you want to use the median, if you want to if you know what the units are renting for right now, you can add >> Dude, that is so cool. Cuz again, one one of the things you've got to realize as an as an as for certainly out of area investor is you're going to be guessing.

[00:07:58]And again, this is why Rentometer is that metal detector cuz again, you have the data, you have the ability to change the variables.

[00:08:04]Um and again, you're you're the data set that you have is you know, extremely valuable for >> Yes.

[00:08:10]>> real estate investors.

[00:08:11]>> Absolutely. So So then So I So here Now I know 5880 is the um and I can just do the math in my head and I say, "Okay, this is going to be close because it's close to the 1% rule." So um I've looked at a lot of multis. I don't unders- I don't understand them. I don't understand why they're why they're priced the way they are because they're not even close to being able to cash cash flow. So um So here's our here's our standard um investment analysis worksheet, our deal worksheet. So there's the gross potential rent and you can see it up here.

[00:08:45]>> Yep.

[00:08:46]>> if you want to look at it, but I'm going to close it up to save some space. So I know the tax on this one is 282 per month. So I add the tax. I have been adjusting my interest rate lately >> Yeah.

[00:08:59]>> cuz it has it's been stubbornly uh up there.

[00:09:02]>> Yep.

[00:09:03]>> So at 6.7% with that cost basis, it's a 3.6 cash on cash 3.6% cash on cash return, right? So then I you know, as we always do, we say, "We've got to get the We've got to get the Zuber discount in here."

[00:09:18]>> Yes.

[00:09:19]>> Cuz I want to get it above uh I want this cash on cash, this initial cash on cash above 10%. So I'm going to just put the 20% discount in. And again, I've I've run this one. So now I'm at 11.3%.

[00:09:36]All of these variables, like if you want to change the um make ready, the improvements, you can use a different number for the make ready.

[00:09:44]>> Well, let's let's do that right now.

[00:09:45]Let's just throw in 10 grand. Let's just just to see so people see what happens.

[00:09:50]>> Yep.

[00:09:51]So, there you go.

[00:09:52]>> There you go. Cash on cash goes down.

[00:09:53]Why? Because you're putting more down or you're putting more cash in play. Yep.

[00:09:57]>> Right. And the closing costs in financing.

[00:10:00]>> Yep.

[00:10:01]This is cool.

[00:10:02]>> So, really we just want our customers to be able to you know, again, get a very that took us less than 5 minutes.

[00:10:11]>> Oh, yeah.

[00:10:11]>> To to get a a decent framework for a deal. And so now, you know, as you've pointed out in the past, I'm not going to if I have a hard 10 10% threshold, >> Mhm.

[00:10:24]>> I'm I'm going to go to the agent and I'm going to say, you know, 520's my my max.

[00:10:31]Put it in the book.

[00:10:32]>> Yeah.

[00:10:32]>> If you don't have anything 30, 60 days from now, give me a call. I'll I'll I might not offer 520 then, but >> Yeah. Yeah.

[00:10:40]>> You you know, you know how it goes. It's like I'll do it for 520, but I here's why I'm not going to go above it.

[00:10:46]So, >> Yeah.

[00:10:47]>> [clears throat] >> now I'm going to back up and just do a different example because I want to show and again, I'm I'm still working with this and and figuring out neat little tips and tricks.

[00:10:58]>> I love I love the fact that the CEO is geeking out with with the technology.

[00:11:02]That is so awesome.

[00:11:03]>> Yeah, so so I go back to my starting point. Oh, I love this stuff. So, you can't keep me away from it.

[00:11:10]Um so, I go back to my starting point. I go to multi-family, right? So, I'm going to use the same uh property, 1101 um Akron Street, Aurora. So, um and I know it's 650,000, right? Now, let's say I've done some digging on the property and I find out that two of the one bedrooms are fully renovated.

[00:11:35]>> Mhm.

[00:11:36]>> And two of them are not.

[00:11:38]>> Got it.

[00:11:38]>> Okay.

[00:11:39]>> And And so, I can say, "Okay, I'm going to put a 1 1 I'm going to call it upgraded."

[00:11:45]And And there's And there's two of them. So, I'm going to do 1 1 and I'm going to say two, right?

[00:11:52]>> Yeah.

[00:11:52]>> Now, I'm going to say the other the 1 1 uh >> Yes.

[00:11:56]>> needs work.

[00:11:58]>> Yeah.

[00:11:59]>> Right? And so, I'm going to put uh 1 1 there.

[00:12:04]And uh there's two of them. And then, I'll add the 2 1 2.1.

[00:12:10]And um 2 1 And now, you can start to do some interesting stuff, right? So, I'm going to calculate the GPI. Now, it's going to come out the same.

[00:12:20]>> Yeah, sure.

[00:12:21]>> I didn't do this to change it at this point. But what I know is the upgraded units, I know I can get the 75th percentile of rent for that.

[00:12:31]>> Exactly. Exactly.

[00:12:33]>> And the ones that need work, I might not be able to get that. So, I'm going to go to the 25th for those. And we'll just say this the 2 1 I know I can get 1,800 for that, right?

[00:12:45]So, I can just put in 1,800, right?

[00:12:47]>> Okay. Yeah.

[00:12:48]>> So, now I've re- I've I've kind of um broken the mold a little bit as to how it was set up. But again, you might have a three-plex a a three-decker or something in Boston. We have a lot of triple deckers. Might have a triple decker. Every unit is identical from a floor plan standpoint, but not from a condition standpoint. So, you would just enter those three differently and adjust the rent per unit.

[00:13:15]>> Love it.

[00:13:16]>> So, I run the investment analysis. I'll do the same thing. I'll go for the 20% discount. I'll up the rate to 6.7.

[00:13:26]And I'll put the improvements up to 10,000.

[00:13:30]>> I like it.

[00:13:31]>> And I need to do the property taxes of 282.

[00:13:36]So, there we go.

[00:13:37]>> There you go.

[00:13:38]>> little better rent number. So, now I'm up to 13.4%.

[00:13:42]I still have that 10,000 out of pocket.

[00:13:44]>> Mhm.

[00:13:45]>> But, you know, I could go in there and maybe I maybe I want to get a you know, I I only want to be above uh 10. So, maybe I can go in a little more aggressively.

[00:13:54]>> Yeah.

[00:13:55]>> And and just do 15%.

[00:13:57]>> Yeah.

[00:13:59]>> Again, it's really just trying to give you a jumping off a a really solid jumping off point for a framework of a deal that you want to try and get done.

[00:14:07]>> Yeah, the thing I love about this is very The other thing that happens naturally the more you use this as an investor is you understand which variables impact cash on cash the most.

[00:14:19]Right?

[00:14:19]>> Absolutely.

[00:14:20]>> Earlier you you took improvements from I think 2,500 to 10 grand. That's a hit.

[00:14:25]Uh you understand if you can get rents higher, what does that do? Um discount, right? Down payment, closing cost, taxes. All of these have ripple impacts on that bottom line. And the more you play with this, the more you you observe, um you'll understand what's the biggest impact on cash on cash.

[00:14:43]>> Absolutely. And it can definitely help shape the type of investor you are, right? Because if you know, I I look at a lot of single-family deals and I was trying to figure out if a deal I I come across these deals literally down to the studs. You know, you look for an off-market deal and it's a shell on the outside and it's, you know, 250,000 below market, the price. And you look at the inside, you go, "Oh, now I know why."

[00:15:10]>> Now I know why.

[00:15:11]>> I usually just push those off and say, "Those are going to be better flips, probably. So, I'm not going to mess There's too much risk for a buy and hold, maybe. So, I'll just I'll go after something else. But, if you look at a property and you say, "If I'm going to put 40,000 in, right? How much do I have to take off the price in order to hold that cash-on-cash?"

[00:15:33]>> Exactly. It's not a one-to-one.

[00:15:36]>> It's not a one-for-one correlation. So, it's really It's like a a point and a half.

[00:15:41]>> Yeah.

[00:15:42]>> Uh you have to take off in order to balance that cash-on-cash. So, like I said, it will help shape like you will see a deal and you'll see 40,000 worth of work and you say, "This one is too close. There's no way if I put that 40,000 in, I So, I'm not even going to take that deal on. Um and you and you start to see stuff like that." So, >> Yeah, the the other thing that this should do with you is it should help you It should help you build your offer.

[00:16:10]Right? Cuz let's look at this example that we have on the screen right now. It looks good. Let's say you go do inspections and it comes back and it needs 50 grand of improvements, right? You eyeball that you thought 10. Can you change it to 50 for improvements?

[00:16:24]Please.

[00:16:25]>> Yeah.

[00:16:26]Uh where is it? Right there. 50.

[00:16:30]All right. So, now, right? So, now that you know this cuz you've done your inspections, your return is now below your minimum of 10% staying with our example. You're going to go back to the seller and the agent, however you're having these communications, and go, "Hey, we need to mark this You know, we need to trade this down." Or again, this is all about formulating the offer. Or you the seller can do the repairs.

[00:16:52]>> Right.

[00:16:53]>> Right. So, you could stay in escrow, you could keep the price point, you can keep everything. But, in this example, you're going to ask the seller to do $40,000 in repairs.

[00:17:01]>> Right.

[00:17:02]>> So, you know, seller, take your pick. Do you want Do you want to do the work or do you want me to do the work?

[00:17:08]>> And most of the time you know the answer, right?

[00:17:10]>> Of course. They want out.

[00:17:12]>> Exactly. [laughter] Hit hit the exit. One other one other use case that I thought of and I won't go into it too much.

[00:17:19]But if you come across a property that you think is like the tenants have been there for 5 10 years and you think that it's under market, right? You could run it at what it is and that's the deal you go at with the broker.

[00:17:36]But then on the side you run it the other you know, so you run the Yeah.

[00:17:41]offer scenario and then you run the >> The before and after.

[00:17:45]>> stabilized scenario and then you can just compare the two. So you you you can save these um >> Oh, very cool.

[00:17:52]>> You can save them so you can view your history. But one of the things is you can you can rename them also.

[00:18:00]So I'm going to rename this one um basic, right?

[00:18:04]>> Yeah.

[00:18:04]>> But so that's just a basic. But let's say I wanted to run a scenario where I wanted to test it against the market rents and see if there's a value add play.

[00:18:14]>> Yeah.

[00:18:15]>> How much would I have to put in? So you lots of ways you can use this and and um you know, like I said, we're really just trying to save our customers time and and get them through this process faster.

[00:18:27]>> Yeah, I mean at the end of the day the one of the biggest risks people have is not understanding the rent and of course in the name Rentometer has the database has the access not only to singles but obviously now multifamily as well. So I love the fact that you're digging for gold. You're the metal detector for folks. So Mike, where can people go?

[00:18:45]>> Um rentometer.com, uh deal worksheet and yield tracker and [email protected].

[00:18:54]Love to see them.

[00:18:55]>> Yeah, I love the fact that you have you give away your email. What is the email one more time?

[00:18:59]>> [email protected].

[00:19:04]>> Thanks buddy. Take care.

[00:19:05]>> All right, thank you.