Our Rental Property Analyzer is based off our own investing spreadsheet that we have used successfully for many years! Determine your next Offer Price using our Rental Property Analyzer using either the free or premium version.
Determining the Offer Price is not something we take lightly. We know there are a lot of people out there who shoot from the hip. Well, that is not us. Every time we look at a property, we run the numbers and we think you should too. It doesn’t take long, and it will give you the peace of mind to really understand if the property you are looking at is really one you should consider looking at further.
We should mention, before evaluating a property to make sure the numbers work, we have already done our research on the city, the schools, the crime rate, and checked out the local assessor site for any relevant information about the property. Once we are comfortable that the property is one we could consider, it is then time to run the numbers!
As you are filling out the information, to your right on the page, you will see a box titled Investment Quick View.
This will be in screen view the entire time you are filling out your information so you can see what is changing.
Step 1 – Fill out Tell us about the Property.
Make sure to select the green down arrow, on the right-hand side, to put in additional details about the property. There are 11 fields available to populate with information about the property.
You will want to populate this section if you decide to save, compare or print information out and share with your banker or real estate colleagues. At the very bottom of this section, you will enter List Price and Estimated Rent.
Step 2 – Fill out the Give us some details about the financing and expenses.
Step 3 – Next you will be asked if you want to include any other expenses. If you select yes, then you will have the opportunity to include Out of Pocket Expenses, Fixed Monthly Expenses, and Variable Expenses.
Step 4 – The next section is the Economic Projections. By filling out these five fields, we can estimate the performance of your property over time.
The graph is at the very bottom of page. Please remember these are only estimates.
Step 5 – Finally, you will move into Let’s determine your offer price. After filling this out, you will be able to see how the property performs. There are three ways to do this.
- Select Offer Price and fill in the value you want to offer.
- Select Cash Flow. With this option, you will enter the cash flow you desire to make each month. Based on this, AssetRover will determine the offer price you need to make to meet that cash flow.
- Select Capitalization Rate. With this option, you will enter the Capitalization Rate you desire to make. Based on this, AssetRover will determine the offer price you need to make to meet this rate.
Step 6 – Next you will be able to View the Graph of Property Performance and see your financial projections over the next 30 years. Simply click on any legend term you want to include on your graph.
Premium Users are able to do the next steps:
Step 7 – Enter a header for the report. Select something that is descriptive. This will be on the printed report and in the header on any property comparisons.
- The Save As function allows you to save a property for the first time.
- The Save function comes into play when you have made an update and you want the analysis to reflect your update.
- The Clear Form function allows you to clear out all the fields and start over.
- The Generate Report button is for when you are ready to create something to share with others.
Step 8 – Analyze! Often, we look at multiple properties at the same time or compare to a property we have purchased in the past. We made it easy to do this! Go to the top right-hand side of the webpage and select Compare Investments and then compare away!
That’s it! Those are the 8 steps we follow when we are determining how much we want offer for a property. Following these simple steps will help you make more rewarding property investment decisions. Good luck!