Best Apps for Analyzing Real Estate Markets: Share Your Experience!

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Best Apps for Analyzing Real Estate Markets: Share Your Experience!

Liam Alvarez
Investor · CO · Member since 2024 · 23 posts · 8 votes

Hello BiggerPockets Community,

I’m in the process of finding the best tools to analyze potential investment markets, and I’m looking for some seasoned insights! I know apps like AirDNA are popular for assessing short-term rental data, but I’d love to hear what other tools or platforms you all use to evaluate markets and find promising investment properties.

Questions for You:

• What apps or resources do you recommend for analyzing real estate markets and identifying strong investment opportunities?

• How have these tools helped you in your investment decision-making process?

• Are there any specific features or data points in these apps that you find most valuable?

I’m especially interested in finding a tool that provides comprehensive data for both short-term and long-term rental analysis, along with market trends and financial forecasts.

Your feedback would be incredibly helpful as I narrow down my options and choose the best app for my investment journey. Looking forward to learning from your experiences and getting some valuable recommendations!

Thanks in advance for sharing your knowledge!

Best,

Liam

0Reply
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Most Popular Reply

Arn CenedellaPro Member
Rental Property Investor · Greenville, SC · Member since 2008 · 786 posts · 1k+ votes
1y

@Liam Alvarez

I’ll be a contrarian here.

After 46 years in the industry, both as a SFR broker & investor and now as a MF operator with over 1000 units as a general partner…..

The best market to invest in is the market YOU KNOW BEST.

(I don't do STR deals so my comments are more about long term buy and hold residential RE.)

Data by its nature is historical - it’s a lagging indicator.
4 years ago the Southeast was the place to be. Now it’s probably the Midwest,

But my the time you get to the Midwest and establish a footprint and “street credibility” with the brokers and sellers another market may be strong.

If you are going to invest out of area, you will need to spend “face to face” “boots on the ground time” there. So pick a market that is easily and readily accessible to you. If your chosen market requires 2 or 3 flights with layovers, you probably won’t have the time or desire to get on the ground as often as you like. Pick an area that is within a 2 hour drive or a 3 hour nonstop plane flight.

Get in that market and really learn it neighborhood by neighborhood block by block.

Local market knowledge is every investor’s competitive advantage.

I do MF deals in Greenville SC where I live and already own 400 doors. I know the market from first hand experience.

Dallas Ft Worth is a fabulous market, all the data says so. But I won’t do to DFW because I don’t know the market and the players like people who have invested 10 years there. The brokers there have their buyer pool there. The only way I would ever win a MF deal in DFW would be to overpay - I wouldn’t understand the sub market like the locals do.

Pick one or two markets you can get to easily. Drill down in those markets.

Hope this makes some sense.

Arn

[email protected]650-575-6114
4Reply
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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    1y

    Normally when people ask about something like this, they are looking for a quick way to survey markets, but that's not a great idea if you guys are brand new. You will be focused way too much on the data and not at all on the feel or want of the area for you. Technology is a good partner the more you know on your own.

    You should make a list of areas you might be interested in first - maybe you lived there or have friends there, you always wanted to go there - and then compare that list to some best areas list, do some of your own research, and then use a major data tool to look.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
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    2Reply
  • Liam Alvarez
    OP
    Investor · CO · Member since 2024 · 23 posts · 8 votes
    1y

    Thanks for that information and perspective – it’s really helpful! I do have a few markets in mind that I’m interested in, including where I currently live and a couple of out-of-state spots that my partner and I love. With that said, I was wondering if these apps would be beneficial to us, especially since many of them come with a monthly fee.

    Given that we already have a shortlist of areas, do you think investing in one of these tools is worthwhile at this stage? Or would you suggest other methods to gather data and insights before committing to a subscription?

    Appreciate any recommendations you might have!

    0Reply
  • Arn CenedellaPro Member
    Rental Property Investor · Greenville, SC · Member since 2008 · 786 posts · 1k+ votes
    1y

    @Liam Alvarez

    I’ll be a contrarian here.

    After 46 years in the industry, both as a SFR broker & investor and now as a MF operator with over 1000 units as a general partner…..

    The best market to invest in is the market YOU KNOW BEST.

    (I don't do STR deals so my comments are more about long term buy and hold residential RE.)

    Data by its nature is historical - it’s a lagging indicator.
    4 years ago the Southeast was the place to be. Now it’s probably the Midwest,

    But my the time you get to the Midwest and establish a footprint and “street credibility” with the brokers and sellers another market may be strong.

    If you are going to invest out of area, you will need to spend “face to face” “boots on the ground time” there. So pick a market that is easily and readily accessible to you. If your chosen market requires 2 or 3 flights with layovers, you probably won’t have the time or desire to get on the ground as often as you like. Pick an area that is within a 2 hour drive or a 3 hour nonstop plane flight.

    Get in that market and really learn it neighborhood by neighborhood block by block.

    Local market knowledge is every investor’s competitive advantage.

    I do MF deals in Greenville SC where I live and already own 400 doors. I know the market from first hand experience.

    Dallas Ft Worth is a fabulous market, all the data says so. But I won’t do to DFW because I don’t know the market and the players like people who have invested 10 years there. The brokers there have their buyer pool there. The only way I would ever win a MF deal in DFW would be to overpay - I wouldn’t understand the sub market like the locals do.

    Pick one or two markets you can get to easily. Drill down in those markets.

    Hope this makes some sense.

    Arn

    [email protected]650-575-6114
    4Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    1y

    @Liam Alvarez  I've never seen an app or a website that analyzes all markets and spits out the top 3 you should invest in for the highest returns.  If that is what you are looking for.  Occasionally you might see commercial real estate companies put out analysis for different markets and different commercial segments.  Companies like JLL, CBRE, Marcus and Millichap and probably plenty others.

    While there are probably some investors that put together some analysis for nationwide investments, I am with @Arn Cenedella . Not always sure this is the best idea as often the markets are so different. A good example of this might show high return for a house in Detroit that is 100 years old, next to a GM plant, vs lower return for a 10 year old house next to the Tesla plant in Taylor, TX. If you just chase returns, you might choose the house in Detroit, vs what long term might be better investment in Taylor. So you have to be careful when just looking at data. We see this with MF investors as well, chasing the highest IRR%, which looks good on paper, but can end very differently on execution. So in the end it is a balance.

    I like the idea of knowing your market very very very well and think if you do, you can outperform vs investing in places you really don't know as well.  Just saw a well respected MF operator buy a property they have big plans for in a very rough neighborhood.  However this neighborhood is very deceptive.  Just drive by and it doesn't look all that bad.  Location is not all that bad, but it is very very rough.  I'm sure the numbers look bad, and they think they can improve them, reno and increase rates by 25-30% and that is the business plan.  I wish them the best of luck, but I'll bet the execution of that business plans goes sideways and in then end the proforma gets trashed.  I know they bought that property based on analysis, but don't know the market or area.

    I'll bet there is all kind of opportunity where you live.  Go after it.

    2Reply
  • Liam Alvarez
    OP
    Investor · CO · Member since 2024 · 23 posts · 8 votes
    1y
    Quote from @Arn Cenedella:

    @Liam Alvarez

    I’ll be a contrarian here.

    After 46 years in the industry, both as a SFR broker & investor and now as a MF operator with over 1000 units as a general partner…..

    The best market to invest in is the market YOU KNOW BEST.

    (I don't do STR deals so my comments are more about long term buy and hold residential RE.)

    Data by its nature is historical - it’s a lagging indicator.
    4 years ago the Southeast was the place to be. Now it’s probably the Midwest,

    But my the time you get to the Midwest and establish a footprint and “street credibility” with the brokers and sellers another market may be strong.

    If you are going to invest out of area, you will need to spend “face to face” “boots on the ground time” there. So pick a market that is easily and readily accessible to you. If your chosen market requires 2 or 3 flights with layovers, you probably won’t have the time or desire to get on the ground as often as you like. Pick an area that is within a 2 hour drive or a 3 hour nonstop plane flight.

    Get in that market and really learn it neighborhood by neighborhood block by block.

    Local market knowledge is every investor’s competitive advantage.

    I do MF deals in Greenville SC where I live and already own 400 doors. I know the market from first hand experience.

    Dallas Ft Worth is a fabulous market, all the data says so. But I won’t do to DFW because I don’t know the market and the players like people who have invested 10 years there. The brokers there have their buyer pool there. The only way I would ever win a MF deal in DFW would be to overpay - I wouldn’t understand the sub market like the locals do.

    Pick one or two markets you can get to easily. Drill down in those markets.

    Hope this makes some sense.

    Arn

    That makes a lot of sense—thank you so much for sharing your knowledge! I really appreciate your insights. I totally get what you’re saying, especially since I know my current market well, having lived here my whole life. Your advice makes me feel even more confident about starting my investing journey close to home!

    2Reply
  • Arn CenedellaPro Member
    Rental Property Investor · Greenville, SC · Member since 2008 · 786 posts · 1k+ votes
    1y

    @Liam Alvarez

    Thank you. 
    Hopefully your local market is growing - population and jobs increasing. Some vitality and growth. Capital being invested in your area. 

    If so invest locally, gain experience and knowledge, scale up and go from there. 

    People have made fortunes investing in NYC and SF. Neither of which would be on anyone’s best market list. 

    Good luck. Let us know how it goes. 

    Arn

    [email protected]650-575-6114
    1Reply
  • Liam Alvarez
    OP
    Investor · CO · Member since 2024 · 23 posts · 8 votes
    1y
    Quote from @Bruce Lynn:

    @Liam Alvarez  I've never seen an app or a website that analyzes all markets and spits out the top 3 you should invest in for the highest returns.  If that is what you are looking for.  Occasionally you might see commercial real estate companies put out analysis for different markets and different commercial segments.  Companies like JLL, CBRE, Marcus and Millichap and probably plenty others.

    While there are probably some investors that put together some analysis for nationwide investments, I am with @Arn Cenedella . Not always sure this is the best idea as often the markets are so different. A good example of this might show high return for a house in Detroit that is 100 years old, next to a GM plant, vs lower return for a 10 year old house next to the Tesla plant in Taylor, TX. If you just chase returns, you might choose the house in Detroit, vs what long term might be better investment in Taylor. So you have to be careful when just looking at data. We see this with MF investors as well, chasing the highest IRR%, which looks good on paper, but can end very differently on execution. So in the end it is a balance.

    I like the idea of knowing your market very very very well and think if you do, you can outperform vs investing in places you really don't know as well.  Just saw a well respected MF operator buy a property they have big plans for in a very rough neighborhood.  However this neighborhood is very deceptive.  Just drive by and it doesn't look all that bad.  Location is not all that bad, but it is very very rough.  I'm sure the numbers look bad, and they think they can improve them, reno and increase rates by 25-30% and that is the business plan.  I wish them the best of luck, but I'll bet the execution of that business plans goes sideways and in then end the proforma gets trashed.  I know they bought that property based on analysis, but don't know the market or area.

    I'll bet there is all kind of opportunity where you live.  Go after it.

    I hear what you’re saying, and thank you so much for the input! There’s a ton of valuable and honest information here, and I’m truly inspired. I’m excited to keep learning, find some local meetups to connect with like-minded investors, and start building a solid team to help me achieve my goals. This journey is just getting started, and I can’t wait to dive in!

    0Reply
  • Arn CenedellaPro Member
    Rental Property Investor · Greenville, SC · Member since 2008 · 786 posts · 1k+ votes
    1y

    @Bruce Lynn

    💯 

    Add in each investor is different. 
    Are you investing for cash flow or for appreciation?

    What’s the investor’s time horizon?

    There is no such thing as THE best market. 

    [email protected]650-575-6114
    2Reply
  • Liam Alvarez
    OP
    Investor · CO · Member since 2024 · 23 posts · 8 votes
    1y

    Would be great for both. But mostly cash flow for now as my first investment. I am currently living in a house that has had great appreciation. 

    My time line is with in the next 3-6 months.

    0Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    1y

    You always invest for appreciation not solely, you always invest understanding it's a physical asset and requires different risk measures. You always invest in areas that support your thesis on the development going forward, not historical.

    Everything you've mentioned is how you're emotions work. Invest appropriately, or you'll regret this.  

    0Reply
  • Olivia Caldwell-Nepveux
    Real Estate Agent · CO · Member since 2022 · 22 posts · 5 votes
    1y

    Hi Liam! 

    I'm a CO based STR investor and STR-focused agent. For short term rentals, I use:

    AirDNA: I love AirDNA, but don't love the address search. Instead of this, I find it more helpful to look at percentile performance across the market for a specific asset type, and also to check comps. This also helps me to forecast seasonality on my properties. Be wary of just using the address search bar, as I've found it can give inaccurate answers at times! 

    Rabbu: Rabbu is a free tool to analyze STRs, but provides a significantly more conservative look than realized data, and tends to be less accurate than AirDNA. Also note that Rabbu does not take cleaning costs into consideration, so that will lower it. I have seen properties show up as far as ~$50k lower in annual revenue than in realized income, so know that the numbers aren't always perfect! I also don't love the search bar on Rabbu, and prefer using specific comps. Happy to walk you through how to do this - just reach out! 

    I see that you're in CO - STR investing in CO can be extremely profitable, which is why my personal investment portfolio is so heavily weighted in that direction. Regulations are both the best and worst part of investing in CO - best because they are confusing, which gets rid of large Wall Street investors and keeps competition lower and profits higher. Worst because you really need to have an experienced expert or specialist to walk you through the regulatory environment, as it can vary on a county, city, or even neighborhood basis! Clients who work with me on STRs are given all analysis tools for free (including expensive AirDNA), and I will personally analyze all deals, and guide you through a confusing regulatory environment, as well as help you to find lesser-known honeypot spots around the state. I also get a TON of off-market, fully furnished STR listings through my network here, which can be lifechanging deals. If you're interested in networking, we have monthly STR networking events in the Denver area that can help you to become more familiar with STR investing here, and connect you with top STR investors in Denver.

    Cheers! 

    Liv

    0Reply
  • Eric FernwoodBusiness Member
    Realtor · Las Vegas, NV · Member since 2014 · 996 posts · 1k+ votes
    1y

    Hello @Liam Alvarez,

    You don't need any apps to select an investment city. The data is readily available, and I will provide the data source and its relevance.

    To ensure we're on the same page, the goal of real estate investing is financial freedom. This isn't merely about replacing your current income—it's about creating an income stream that sustains your lifestyle indefinitely. To achieve this, the rental income must meet three requirements.

    Rents Must Outpace Inflation

    Inflation steadily erodes the purchasing power of a fixed amount of money. For example, if the inflation rate is 5%, what costs $100 today will cost $155 in 10 years. If rents don't keep pace with inflation, you won't have enough funds to cover these inflated prices.

    Rents and prices are driven by supply and demand. Demand is a function of population change. In cities with significant and sustained population growth, rents and prices will rise faster than inflation, enabling financial freedom.

    Conversely, rents and prices rise slowly in cities with static or declining populations because the current housing inventory is sufficient. Low property prices evidence this. No matter how many properties you own in such a city, you can't achieve financial freedom because inflation continuously erodes your purchasing power. Eventually, you'll have no choice but to get a job to maintain your standard of living.

    Best source for population growth: Wikipedia

    Last Throughout Your Lifetime

    You cannot sustain financial freedom if your income doesn't persist throughout your life. However, your rental income depends on your tenants remaining employed at similar wages. The problem is that non-government jobs aren't permanent. On average, U.S. companies last only ten years. Large companies, like those on the S&P 500, last on average for 18 years. So, every non-government job your tenants have will end in the foreseeable future unless new companies move into the city and create replacement jobs that pay similar wages and require similar skills; Otherwise, soon all that will be left are lower-paying service sector jobs. Below are the key factors companies consider when choosing a city for investment:

    • Low operating costs: Companies are unlikely to choose a location where state income taxes, property taxes, and insurance consume a significant portion of their potential profit. Sources for insurance and property taxes: Insurance—ValuePenguin, State Property Tax Rates—Rocket Mortgage. State income taxes: Here's a map showing state income tax rates.
    • Low crime: Companies are unlikely to choose high-crime cities. Avoid investing in any city listed here: The Most Dangerous Cities in America, Ranked.
    • Cities with a metro population >1M: Companies need significant infrastructure, which is only available in metropolitan areas with a population > 1 M. Wikipedia
    • Pro-business environment: Companies are reluctant to set up operations in cities with burdensome regulations that hinder profitable operations. Google search.

    Ability to buy multiple properties with minimal capital

    You'll need multiple properties to replace your income. Let's consider an example. Say your monthly income requirement is $5,000/Mo, and each property generates $300/Mo. If each property costs $250,000 and the only acquisition cost is a 25% down payment, how much savings would you need?

    • ($5,000/$300) x $250,000 x 25% = $1,062,500

    For most people, this is an unattainable amount of after-tax savings.

    If you buy in a city with a high appreciation rate, you can grow your portfolio through appreciation and cash-out refinancing. For example, if the first property costs $400,000 and your acquisition cost is a 25% down payment, you need:

    • $400,000 x 25%. = $100,000

    If the appreciation rate is 8%/Yr, how long will you need to hold the property before a 75% cash-out refinance to yield enough to have $100,000?

    • After one year: $400,000 × (1 + 8%)^1 × 75% - $300,000 ≈ $24,000. For simplicity, I've assumed no principal paydown on the original $300,000 mortgage.
    • After two years: $400,000 × (1 + 8%)^2 × 75% - $300,000 ≈ $49,920
    • After three years: $400,000 × (1 + 8%)^3 × 75% - $300,000 ≈ $77,914
    • After four years: $400,000 × (1 + 8%)^4 × 75% - $300,000 ≈ $108,147

    While the above example is oversimplified, the concept is valid. Many of my clients and I have grown our portfolios through appreciation and cash-out refinancing with minimal additional capital.

    Zillow Data is one of the most reliable sources for analyzing appreciation rates at the zip code level.

    Summary

    No special apps are necessary. A process is far more important. The information required to select an investment location that enables financial freedom is readily available and straightforward. To choose an optimal investment location, follow these steps:

    1. Select a city with a metro population >1M and sustained and significant population growth. Wikipedia
    2. Choose a state with low operating costs. Every dollar spent on operating expenses reduces your potential income. Insurance—ValuePenguin, State Property Tax Rates—Rocket Mortgage. State income taxes: Here's a map showing state income tax rates.
    3. Low crime: Avoid investing in any city listed here: The Most Dangerous Cities in America, Ranked.

    I will add one more location consideration

    1. Never buy in a city with any form of rent control. Google search.

    Liam, I hope this helps.

    [email protected]702-358-8884
    FERNWOOD Team, KW VIP Realty520 Reviews
    WebsiteView Page
    3Reply
  • Liam Alvarez
    OP
    Investor · CO · Member since 2024 · 23 posts · 8 votes
    1y
    Quote from @Eric Fernwood:

    Hello @Liam Alvarez,

    You don't need any apps to select an investment city. The data is readily available, and I will provide the data source and its relevance.

    To ensure we're on the same page, the goal of real estate investing is financial freedom. This isn't merely about replacing your current income—it's about creating an income stream that sustains your lifestyle indefinitely. To achieve this, the rental income must meet three requirements.

    Rents Must Outpace Inflation

    Inflation steadily erodes the purchasing power of a fixed amount of money. For example, if the inflation rate is 5%, what costs $100 today will cost $155 in 10 years. If rents don't keep pace with inflation, you won't have enough funds to cover these inflated prices.

    Rents and prices are driven by supply and demand. Demand is a function of population change. In cities with significant and sustained population growth, rents and prices will rise faster than inflation, enabling financial freedom.

    Conversely, rents and prices rise slowly in cities with static or declining populations because the current housing inventory is sufficient. Low property prices evidence this. No matter how many properties you own in such a city, you can't achieve financial freedom because inflation continuously erodes your purchasing power. Eventually, you'll have no choice but to get a job to maintain your standard of living.

    Best source for population growth: Wikipedia

    Last Throughout Your Lifetime

    You cannot sustain financial freedom if your income doesn't persist throughout your life. However, your rental income depends on your tenants remaining employed at similar wages. The problem is that non-government jobs aren't permanent. On average, U.S. companies last only ten years. Large companies, like those on the S&P 500, last on average for 18 years. So, every non-government job your tenants have will end in the foreseeable future unless new companies move into the city and create replacement jobs that pay similar wages and require similar skills; Otherwise, soon all that will be left are lower-paying service sector jobs. Below are the key factors companies consider when choosing a city for investment:

    • Low operating costs: Companies are unlikely to choose a location where state income taxes, property taxes, and insurance consume a significant portion of their potential profit. Sources for insurance and property taxes: Insurance—ValuePenguin, State Property Tax Rates—Rocket Mortgage. State income taxes: Here's a map showing state income tax rates.
    • Low crime: Companies are unlikely to choose high-crime cities. Avoid investing in any city listed here: The Most Dangerous Cities in America, Ranked.
    • Cities with a metro population >1M: Companies need significant infrastructure, which is only available in metropolitan areas with a population > 1 M. Wikipedia
    • Pro-business environment: Companies are reluctant to set up operations in cities with burdensome regulations that hinder profitable operations. Google search.

    Ability to buy multiple properties with minimal capital

    You'll need multiple properties to replace your income. Let's consider an example. Say your monthly income requirement is $5,000/Mo, and each property generates $300/Mo. If each property costs $250,000 and the only acquisition cost is a 25% down payment, how much savings would you need?

    • ($5,000/$300) x $250,000 x 25% = $1,062,500

    For most people, this is an unattainable amount of after-tax savings.

    If you buy in a city with a high appreciation rate, you can grow your portfolio through appreciation and cash-out refinancing. For example, if the first property costs $400,000 and your acquisition cost is a 25% down payment, you need:

    • $400,000 x 25%. = $100,000

    If the appreciation rate is 8%/Yr, how long will you need to hold the property before a 75% cash-out refinance to yield enough to have $100,000?

    • After one year: $400,000 × (1 + 8%)^1 × 75% - $300,000 ≈ $24,000. For simplicity, I've assumed no principal paydown on the original $300,000 mortgage.
    • After two years: $400,000 × (1 + 8%)^2 × 75% - $300,000 ≈ $49,920
    • After three years: $400,000 × (1 + 8%)^3 × 75% - $300,000 ≈ $77,914
    • After four years: $400,000 × (1 + 8%)^4 × 75% - $300,000 ≈ $108,147

    While the above example is oversimplified, the concept is valid. Many of my clients and I have grown our portfolios through appreciation and cash-out refinancing with minimal additional capital.

    Zillow Data is one of the most reliable sources for analyzing appreciation rates at the zip code level.

    Summary

    No special apps are necessary. A process is far more important. The information required to select an investment location that enables financial freedom is readily available and straightforward. To choose an optimal investment location, follow these steps:

    1. Select a city with a metro population >1M and sustained and significant population growth. Wikipedia
    2. Choose a state with low operating costs. Every dollar spent on operating expenses reduces your potential income. Insurance—ValuePenguin, State Property Tax Rates—Rocket Mortgage. State income taxes: Here's a map showing state income tax rates.
    3. Low crime: Avoid investing in any city listed here: The Most Dangerous Cities in America, Ranked.

    I will add one more location consideration

    1. Never buy in a city with any form of rent control. Google search.

    Liam, I hope this helps.

    Hi Eric,

    Thank you for this detailed breakdown—it’s incredibly insightful, and I appreciate the guidance. The emphasis on population growth, low operating costs, and avoiding rent control makes a lot of sense, especially in the context of inflation and long-term financial stability.

    Regarding the down payment, I noticed you used 25% in your examples. Is that what you typically recommend for an investment property, or would there be any flexibility depending on the city or type of property? I’m interested in understanding if a smaller down payment might be viable, or if 25% is generally the best approach to maintain a strong financial foundation.

    Thanks again for all the valuable information—this has been very helpful.

    Best regards,

    Liam

    0Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    1y

    @Liam Alvarez  What apps are you looking at?  Can you share with us?

    0Reply
  • Devin Conley
    San Diego · Member since 2024 · 44 posts · 20 votes
    1y

    Hey @Liam Alvarez -- interesting discussion you kicked off here! I actually happen to be working a new project related to exactly those questions. Do you have any specific cities you are considering? Happy to put together some sample reports and market comparisons.

    0Reply
  • Eric FernwoodBusiness Member
    Realtor · Las Vegas, NV · Member since 2014 · 996 posts · 1k+ votes
    1y

    @Devin Conley,

    At the current high interest rates (~7%), you will likely need to put 30% down to have a neutral cash flow. You could also put 25% down and buy down the interest rate to achieve the same. Another alternative is to have a negative cash flow by putting down less. I believe that within three years, rates will be much lower, and you can refinance.

    Another consideration is that once you get a property under contract, you should immediately shop around for better rates. Many of our clients have done this and secured much better terms.

    ...Eric

    This spreadsheet decision is based on what you can afford and when you expect interest rates to fall.

    [email protected]702-358-8884
    FERNWOOD Team, KW VIP Realty520 Reviews
    WebsiteView Page
    0Reply
  • Ian Hogan
    Real Estate Agent · Boston, MA · Member since 2019 · 62 posts · 85 votes
    1y

    There are a lot of good resources throughout this thread an additional one I would recommend looking at are the Fair Market Rents on the HUD website. Not an app just data, but this is a great website to know what the bottom for rent is for section 8 often times, this isn't true all the time so you have to be aware (it is more true in more populated cities). I often use this to help calculate some quick math on deals.

    0Reply
  • Steven S.
    Specialist · LA & Ventura · Member since 2023 · 119 posts · 60 votes
    1y

    I do fix & flips and build 3-4 unit rentals in the SoCal area. It's super competitive here and we have a large flow of off-mkt homes coming our way, so we had to develop tools to speed up acquisitions/underwriting.

    I built something that allows VA's or very green staff members the ability to properly distinguish opportunity as if they had years of expert experience & local market knowledge.

    It will run sales comps & estimate ARV for you:

    And has drilled-down market stats that are actually useful! The top chart below quickly shows you what the renovated, avg and distressed homes sell for in that area on a $/sf basis over time, so if you are estimating way over the top line, you instantly know something is off, maybe you have an outlier comp on your hands, etc.


    It doesn't have STR data, because any STR we build must also pencil as a LTR to avoid being upside down if it doesn't workout, so we use normal residential lease data when underwriting our rentals.

    As for forecasts on the market, I don't do any aside from the current Q trending % at the footer of the charts, and it's really just the current Q's average data/performance held constant and applied to the rest of the quarter (since not fully done with Q yet). This yields the % up or down we are in the current Q relative to the last fully closed Q, so as the transactions roll in each day I get an idea of the current Q's direction.

    I'll always advocate for building your own tools so you can build them to suit whatever your development schemes require for the best experience, efficiency, and confidence. This one only has SoCal data, but if you end up looking at deals out here, use it! Hope this gives you a good idea of how these tools help us. Would be glad to hear suggestions/feedback on it as well if you use it!

    0Reply
  • Steven S.
    Specialist · LA & Ventura · Member since 2023 · 119 posts · 60 votes
    1y
    Quote from @Bruce Lynn:

    @Liam Alvarez  I've never seen an app or a website that analyzes all markets and spits out the top 3 you should invest in for the highest returns.  If that is what you are looking for.

    You have seen it now:

    It takes a good second to understand what's plotted in the scatter plot, but this is my version of that. Has every market (by city or by zip) in SoCal, which is where we fix & flip & build rentals.

    I'd recommend more drilled-down market stats like the bottom graph for validating your underwritings and making go-no go decisions, but it's still interesting to visualize & pick-out those super-performant markets.

    To be fair, I haven't seen something like this either, that's why I built it!
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