Review the buy and hold worksheet that helps you put together a rental income property P&L to use when pitching potential buy and hold rental income investor buyers.
- [Instructor] Hey, welcome back. … In the last lecture, we looked at these two worksheets … that you can print out and use as part … of your pitch to a flip investor, right, investor buyer. … Now in this lecture, we're going to look … at the last worksheet here, it's again something … that you can print out and take to a potential buyer. … It prints out on a nice page like this, … but it's something that you would use … to pitch a buy and hold type investor, … somebody who wants to pick up that property, … do the rehab, and then lease it up to a tenant, … and then hang onto it and collect rents, okay? … So, let's see what's in here, all right? … Now this top part is the rental comps … that you did in the ARV exercise. … Remember, we went here and we found rental comps, … well that's where it's kicking in now. … In this this buy and hold part, … we have these rental comps, … we have these rent, these units that are very similar … and we get a per square foot rent here based on the comps, …
- Name the formula used to calculate the MAO from the AVR.
- Summarize the 70% rule.
- Differentiate between the rehab estimator, ARV, and MAO calculator worksheets.
- Describe the factors in an AVR estimate.
- Cite the formulas that are helpful when pitching to a flip investor buyer.
- Explain the difference between recently sold comps and rental comps.