If you analyse your investment opportunity poorly or don't analyse it at all you might get very poor return on investment or even lose a lot of your money (potentially your whole down payment!). So, tread carefully, just putting money blindly in real estate will likely not work very well.
Luckily there are a lot of resources that you can learn from! I will present you some of my favorite learning resources and tools. I will try to give a variety of examples, some referring specifically to the Irish market, because of the fact that the taxes are much different in Ireland compared to USA. In US the real estate investors pay very little tax, in Ireland it's a different story...
- calculate your total necessary upfront investment (purchase related and renovations)
- calculate ongoing operation expenses
- estimate rental income
- budget for bigger expenses
- estimate your taxes
If you want something more in depth, I would recommend picking up some Rental Property investing books.
One of my favorite ones is the Book on Rental Property Investing - by Brendan Turner, which was the first real estate book I've read. From it you will learn a lot, not only the deal analysis, but also negotiation, due diligence and some property management. Pick it up if you haven't already and you are serious about real estate investing!
It also looks like the property hub has a bunch of books I haven't checked them out yet, but they should be a bit more relatable to Irish investors.
And don't forget to checkout your local libraries! Even during a pandemic, you can order a book to pick up or lend ebooks or audiobooks.
There are some oldschool people who still use pen and paper to do this, but these days most people would use software ranging from spreadsheet to custom built deal analysis apps.
Even if you aren't a spreadsheet wizard, you should be able to put together a basic spreadsheet using tools like Google sheets, Excel or libreoffice (open source).
When it comes to custom build apps for this purpose, I am aware of couple of options.
- Bigger Pockets Calculators - calculators that can be used to analyze a wide variety of real estate deals (targetted at US investors), part of the Bigger Pockets platform, free for people having the paid Bigger Pockets membership
- https://dealcheck.io/ - another US centered tool (some functionality is free)
- Redeal - free to use web app targeting Irish property market, see a report created with Redeal
- Deal details:
- Financial summary: