From the course: Real Estate Analysis Foundations

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Single unit rental analysis, part 1

Single unit rental analysis, part 1 - Microsoft Excel Tutorial

From the course: Real Estate Analysis Foundations

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Single unit rental analysis, part 1

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- [Instructor] Okay, in this lecture, we're going to go over the rental example that we're going to actually analyze with the model. So, at a high level, this is what we're going to be doing. We're going to be buying a recently built single family home in an up and coming community targeting young families. There's very little to no renovations to do. It's going to be a long term hold. We're going to look at it for a seven-year hold, and we're going to compare just like in the fix and flip case, what it looks like for the investment if it's done all cash versus with some debt, and we're going to collect some rents from this investment and hopefully it makes a good investment return, okay. So, now let's look at the actual economics of the example we're going to be doing. We're buying a 122,000 Short Sale home. It's a four-bedroom home built in 2003. The home owner bought it at the peak in 2006, have been struggling, and finally is underwater, has negotiated something with the bank to…

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