Rental Investor contains 2 sections which enhance investing in real-estate – Research and Manage. In the research portion of the site you can: search, analyze, model, and compare properties you would like to evaluate as a real estate investment.
These tools were developed to enable first time real estate investors to find their first rental property the same way professional investors find and evaluate potential rental properties of their own.
The overview page contains a county by county overview of Rental Yields for each county in which sales data is available. Not every county has enough data to create a median sales price and therefore is not included in the analysis. Rental Yields enables a quick way to find a location to invest, but not a specific property to invest in. It is the same concept as the Cap Rate for an individual property – just on a county level.
Rental Yields is calculated by taking the annual Fair Market Rent (FMR) for the county and dividing it by the median sales price in the county. We use Fair Market Rent (FMR) for a 3-bed room unit, provided by HUD, since they regularly sample each county to determine the median rent payments for Section 8 tenant payouts.
Using Rental Yields enables you to easily find a county with the greatest potential to maximize your returns. However, using Rental Yields alone could result in significant investment loss when not taken into account with local economic conditions such as vacancy rates, unemployment rates, appreciation, the investment itself, etc…
Each county is color coded to help identify the hottest potential. The potential is broken down by percentage groups: 0-5%, 5-10%, 10-15%, 15-20%, and 20-25%. You have the option to click on any county and see the county information used to calculate the Rental Yield. By clicking on search in the pop up window, you will then search that county for available home on the RMLS.
County Rental Yields are also listed in an easy to sort table. Sort by State, County, Median Prices, FMR and yields to find the location that fits your needs and investing requirements.
Once you find a property in the RMLS system, you can add it to your property research list to perform a deep analysis on the property. Here you will see the county unemployment rates, vacancy rates, local appreciation, etc… to analyze whether the property even make sense as a real estate investment.
To evaluate a property’s investment potential, you will need to add it to your property list.
- Click on “Add Property”
- Enter the address of the property you wish to add to your property list and then evaluate its investment potential. The address should be in the form of ‘street address, City, State Zip’.
- Click Search. Rental Investor will look up the details and automatically import the details of the property into your property list
In the case the property cannot be found, you have the option to manually create the property.
- Click on “Add Property”
- Click “Manually Add”
The property form will initialize and allow for manual property entry.
- Create a name for the property. The name should have no spaces but you can use underscores “_” to provide spacing.
- Enter the street address of the property
- Enter the City
- Select a State
- Enter the zip code
- Year built
- Lot size
- Number of bedrooms
- Number of baths
- House size (in square feet)
- Click “Save”
The property will be manually added to your property list. You can now evaluate the Fair Market Rent, Appreciation Rates, Vacancy Rates, perform a complete financial assessment of the property, as well a model your return based on the growth assumptions.
Another option for adding properties to your research list is by bulk importing them. The number of properties is limited based on your subscription level, if you exceed that limit, the properties will not import. You have the option to upgrade your account or delete properties in your research list to enable more property uploads.
On the research page, click on Import. The import dialog will pop up. Then select “Download Template” to download the template to your desktop. The template is in Excel format at this time.
Row 1 of the template is the header. You should leave this as-is. Anything in this row will not actually be imported. You can then add property addresses to the rows below. When you are done save the file to your desktop.
To upload your properties, you have the option to:
- Drop the file directly into the upload box. It will immediately start importing each of the lines in the template.
- Browse for the file, select it, and upload to Rental Investor.
Once your properties are uploaded, it will have been added to your property research list for a deep analysis on the property.