If a Rental Property Passes This “Test,” BUY It

Episode #1283 Baselane: Automate your real estate finances with banking and AI-powered bookkeeping. Claim your $100 bonus! https://www.baselane.com/lp/bigger-pockets/?utm_source=bigger_pockets&utm_campaign=bigger_pockets&utm_medium=YT-M If you’re *about to buy your first rental property, or are buying another, hear this.* In today’s market, *investors are growing more nervous before making a down payment* on a property. That could be tens, or even hundreds of thousands of dollars you’ve worked for, and putting it in the *wrong rental could set you back* years to *financial freedom.* But if it’s the right property, you could *fast-track your independence.* So, how do you know which one is which? In this episode, Henry and I are sharing *the “stress-tests” to perform before you buy* a rental—if it doesn’t pass, we won’t buy the property, no matter how good the deal “looks”. But that’s not all, we’re answering other questions from the *BiggerPockets Forums* about how much money you should have in the bank *before you BRRRR (buy, rehab, rent, refinance, repeat),* how to get around *the hardest part of managing rental properties,* and whether *lowering rent* is worth it *for a great tenant* (not so straightforward). Episode Show Notes: https://lnk.to/biggerpocketsYT Ask Your Question Here: https://www.biggerpockets.com/forums?utm_source=owned_media Join BiggerPockets for FREE 👇 https://www.biggerpockets.com/signup?utm_source=owned_media 🎉Join us at the BiggerPockets Conference October 2-4 in Orlando. Buy tickets: https://biggerpockets.com/bpcon2026 Let Us Know What You Thought of the Show! https://www.BiggerPockets.com/Podcastfeedback Run the Numbers BEFORE You Buy with _Real Estate by the Numbers_ : https://store.biggerpockets.com/products/real-estate-by-the-numbers?utm_source=youtube&utm_medium=description&utm_campaign=none Sign Up for the BiggerPockets Real Estate Newsletter: https://www.biggerpockets.com/email-subscribe?utm_source=youtube&utm_medium=description&utm_campaign=none Property Manager Finder: https://biggerpockets.com/findapm 6 Numbers You Need to Know Before Buying a Rental Property: https://www.biggerpockets.com/blog/real-estate-1244?utm_source=youtube&utm_medium=description&utm_campaign=none Connect with Henry: https://www.biggerpockets.com/users/henryw22?utm_source=youtube&utm_medium=description&utm_campaign=none Connect with Dave: https://www.biggerpockets.com/users/davem27?utm_source=youtube&utm_medium=description&utm_campaign=none 00:00 Intro 01:16 Feeling Nervous Before 1st Rental 08:12 BEST Stress-Test for Rentals 15:00 Sponsor: Baselane! 15:55 How Much Money to BRRRR? 20:36 Watch THIS If Self-Managing 26:28 Lower Rent for Great Tenant? 31:19 Ask Your Question!