6 Numbers You Need to Know Before Buying a Rental Property

These are the six numbers you need to know before buying a rental property. Too many investors are still buying properties based on vibes in 2026. They say stuff like, it feels like a good deal, or it'll cash flow if mortgage rates come down. That is not investing. That's speculation. Today, we're gonna walk you through the six numbers you absolutely need to know before you buy any rental property, whether it's your first deal or your fifteenth. These are the numbers we personally look at when analyzing properties, so we can make sure we're picking the properties that bring us closer to financial freedom and avoid the costly mistakes that slow you down. By the end of this episode, you'll know which metrics to prioritize when running your numbers, exactly how to calculate each one, and how all six fit together to tell you whether a deal is actually worth buying. What's up, everyone? I'm Dave Meyer, chief investment officer at BiggerPockets, here with my cohost, Henry Washington. Henry, how's it going, man? It's going well, bud. How are you? Good. I'm excited to talk about numbers, as I'm guessing you can tell. You you know this about me that this is what gets me going in the morning is talking about numbers. Well, you all probably know that as well. I love numbers. And between the two of us, between Henry and I, we have analyzed probably thousands of real estate deals. And I could tell you that the difference between investors who build wealth and investors who stall out usually comes down to understanding their numbers. You know, Henry, we talk about this all the time. Like, a good deal is just kind of a simple math problem at the end of the day. Yeah. If you're buying a deal on today's merits, then, yeah, it's a math problem. I think a lot of the times people get into, like, what's the value of this going to be in the future? That's speculation. We're talking about what's it worth now. And the assumptions that you make about each of these six numbers are really what's important. So, Henry, start us off. What's number one? Well, number one is current value, sometimes referred to as as is value. So what's the current value of the property? Oh, you mean list price? Absolutely not list price. List price has nothing to do with what the value of the property actually is. Now a good realtor should help you price your property appropriately for what the market is willing to pay for your property in its as is condition. But that's not what always happens. What a property is listed for is just what someone thinks and or wants the property to sell for. It does not mean that that is the current value of the property. Why is this important? Well, Well, it's important for a couple of reasons. First and foremost is you don't wanna overpay for …