So I have started to analyze rental properties, to find them using the general sites like loopnet, realtor, Zillow, etc.
I have an agent I am working with, but it's mostly me just passing info through them right now. My question is when I see listings for rentals most don't have enough information to even start to look into them.
Do you guys have a list you give to selling agents/sellers right off the bat, and what all do you ask for in that initial contact to analyze a deal?
Look at the tab at the top of the screen entitled "learn" and use the example for how to analyze a deal. You know the asking price, figure your down payment, and the closing costs they used in the example were very high at $8000. I was plugging in anywhere from $2000-$4000 depending on the cost of the property I was looking at until I met with a banker and he told me they had fixed closing costs of $995. The banker also gave me an interest rate of 5.5% and said that they will only loan for a 20 year term. So meeting with a banker really helped me to know some of the numbers. Then look at what properties are renting in the same area to get an idea of what to put for rental income. I watched a webinar where they showed their BP calculator and used a vacancy rate of 12%, so that is what I have been using. The bank told me they use a higher number up to 25%. Property taxes can be found on the MLS listing or zillow. I usually put about $20 a month for insurance, but not sure if that is right, you can figure for maintenance things like hot water heater, snow removal, lawn care, etc and put an amount there. I don't put anything for utilities because I plan on the tenant paying those. As I have yet to purchase a property, I may be off on these calculations, but it is a starting point, and I analyze a couple deals every day to get the practice. Definitely overestimate your expenses and underestimate your income if guessing at any numbers.
Great advice Donna, now the only thing left is to take the plunge and jump in.