How to Analyze a Rental Property Using the Property Analyzer?

The Property Analyzer is a tool based on the numbers you provide. First, enter the Purchase Price and the ARV (After Repair Value) assumptions. Then we'll choose what type of this deal this is going to be (Your Exit Strategy). 

In this scenario, our strategy will be to purchase this property to be a Rental.

Acquisition:

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Choose your Financing Strategy. (Note: The Closing Cost will be calculated into your 1st year of Income which could result in negative cash flow).

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As you enter Purchase Price, ARV, and Financing Strategy, you will notice that the numbers on the right will dynamically update with the "Equity at Close", "Loan Amount", and "Avg Monthly Cash Flow" for year 1 and 2.

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Expenses: 

What are your expense assumptions? "Initial Repairs", "Property Management", "Taxes", and "Insurance"...etc

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Income:

How does your revenue breakdown? "Monthly Rent", one time "Deposit", "Annual Growth"...etc

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The Exit:

"Holding Period", Future "Realtor Fee" and "Commissions", and "Closing Cost".

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Reports:

Now that your assumption numbers are entered. The Analyzer will populate 3 reports based off the information you've provided. The Cash Flow Report, Operating Expense, and the Executive Summary. Each could be downloaded and printed.Screen_Shot_2019-02-15_at_3.30.33_PM.pngYou have successfully learned how to use the Analyze tool for Rental properties. If you have any questions or concerns about the information above please contact us at support@reiblackbook.com.  

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