BiggerPockets Real Estate Podcast

6 Numbers You Need to Know Before Buying a Rental Property

25 snips
Feb 25, 2026
They break down six must‑know numbers every investor should run before buying rental property. Topics include telling true value versus list price, getting accurate comps and rent estimates, finding walk‑in equity and forced appreciation, accounting for hidden holding costs, and using cash‑on‑cash return over simple cash flow. Practical tips for flips, BRRRR, and buy‑and‑holds are highlighted.
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INSIGHT

Current Value Is Not The List Price

  • Current value is not list price and protects you from overpaying.
  • Use an appraisal or a careful agent comp that matches finish quality and usable square footage to find true as-is value.
ADVICE

Never Buy Without Day One Equity

  • Always calculate equity before buying and never buy without walking into some or planning to create it.
  • Equity equals asset value minus liabilities, and Henry insists he never buys a deal without day-one equity.
INSIGHT

ARV Guides Offers And Rehab Budgets

  • After Repair Value (ARV) predicts future sale value and sets renovation budgets and offer limits.
  • Use conservative comps and ask agents for middle-to-low ARV estimates to avoid overpaying or overspending on rehab.
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