My Favorite FREE Software to Analyze a Property in 5 Minutes or Less
My Favorite FREE Software to Analyze a Property in 5 Minutes or Less
Invest Like a Pro: Learn How to Analyze Deals with DealCheck.io
Happy Thursday, fellow Hybrids!
In today’s newsletter, I will show you my favorite deal analysis software & provide step-by-step instructions on how to analyze a real estate deal in 5 minutes or less. For FREE!
(Today’s issue takes ~4 minutes to read)
NOTE: There are several screenshots in this email, so it may appear longer than normal.
Analyzing deals is one of the most time-consuming tasks when shopping for rental properties.
But effective deal analysis is the first line of defense against getting yourself into a bad deal.
Being able to analyze a high volume of deals allows you to:
Identify market trends
Compare and contrast different investment opportunities quickly
Calculate ROI metrics (cash on cash, IRR, return on equity)
Select the best property for your needs based on the above
This approach helps you avoid costly mistakes and increases your chances of achieving long-term financial success in real estate investing.
(See my previous article here if you need a refresher on how to run a cash-flow analysis)
So how can you achieve a high volume of deal analysis without spending hours upon hours per week? Luckily I have just the tool for you.
Enter DealCheck.io…deal analysis software that allows you to analyze a property in 5 minutes or less.
As promised, here is a step-by-step guide on how to analyze a deal through DealCheck:
(One quick note: Any links to DealCheck in this article are affiliate links; however, the free version of DealCheck includes more than enough to get you started. You do NOT need a paid version of DealCheck to get value out of the site)
Go to Dealcheck.io and log in to your account (or sign up for a free trial).
Once you're logged in, click on the "Analyze Property" button at the top of the page. You’ll have the option to use a template (use the default for now). Click “Import Property Data” and move to the next step.
On the next screen, enter the address of the single-family property you want to analyze, then click “Search”
DealCheck will automatically pull up information about the property, including:
Estimated value
# of bedrooms and bathrooms
Square footage
Estimated rent (using RentCast - a rental comp database)
Property tax info from prior year
Estimated insurance cost
Photos & description of the property (from MLS)
NOTE: If any of the information is incorrect or incomplete, you can edit it manually before saving.
Click “Save” once you’re ready to move on.
You will now arrive at your “Property Analysis” Dashboard. This is where you customize your purchase price, expenses, and financing for the property.
Start by clicking “Edit Property”
This will take you to your “Purchase Worksheet”
Key in your Purchase Price (this is the field you’ll likely change the most depending on how the rest of your analysis goes). For this example, you can use the imported value from DealCheck to start.
Next, click on the "Financing" tab to enter information about your financing options. You can enter the down payment, interest rate, loan term, and other details to see how they will affect your overall returns.
In this example, I am using a 30-year fixed-rate conventional loan at a 7% interest rate (the harsh reality of today) with a 25% down payment (standard for investment properties).
Once you've entered all of your financing info, click on the "Income" tab to estimate the property's rental income. You can enter the monthly rent amount, vacancy rate, and other details to get an accurate estimate of your cash flow.
Use the imported rent estimate from RentCast to start.
DealCheck defaults to a 10% budget for vacancy (the time between when one tenant moves out and another moves in when you’re not getting rental income.
After entering your financing information, click on the "Expenses" tab to add in any monthly expenses you expect to incur, such as property taxes, insurance, and maintenance costs.
Finally, click on the "Property Analysis" tab to see a detailed breakdown of your projected returns.
You'll be able to see your estimated cash flow, return on investment, and other key metrics. Experiment with different scenarios by adjusting your financing, expenses, and income estimates.
Once you're happy with your analysis, you can save the property to your portfolio or export the results to a PDF or Excel file. You can even share a link directly to DealCheck.
Here’s an example of a link to an Interactive Shared Report for our example property.
That's it! By following these steps, you should be able to analyze a single-family property using DealCheck.io in 5 minutes or less and get a detailed understanding of your potential returns.
I am offering a free 30-minute call with any of my readers who would like to walk through the deal analysis process with me live.
You can book time here.
Hope you found this useful. See you next week!
-Aaron