Was this page helpful?

Property Analysis Module

    Introduction

    The onTrackCRM Property Analysis module takes data that you can search and export form the MLS system and runs comparable analysis on it.  This method is used to ensure that you can find and customize the search for your target properties.  The module is not meant for the final due diligence stage of the property search.  Rather, use the Property Analysis find the best potential properties for which further analysis is warranted.

    Basic Process

    • The first and one-time step is to setup an export from your MLS.  Once this is complete you will reuse the export.
    • Do a property search as you would normally do in your MLS
    • Export all of the resulting properties using the MLS export you previously setup.
    • In onTrackCRM, navigate to Power Reports > CA Investment Property Analysis
    • Paste the property data exported from your MLS
    • Click the Calculate Cash-Flow or Calculate FIip button depending on the type of analysis desired
    • The default parameters presented on the next screen are generaly sufficient for most people.  Adjust as needed.
    • Click Generate Report

    Cash Flow Calculations

    This is meant as a simple explanation of how the analysis module produces calculations

    • Comparables rental properties are match based on bedroom count, zipcode, size and age
    • The actual comparables used can be seen by clicking on the number of comps displayed in the MLS Comps column
    • The retnal income for the comps are calculated using 3 methods
      • High = Highest rent amoung all of comps
      • Avg = Average of all rents amont the comps
      • Low = Lowest rent amoung all comps
    • The Property Expense Column is calculated using the following;
      • P&I Mortgage payment.  This is based on the down payment and rate specified on the parameter screen
      • HOA Fee.  This is taken from the MLS Export
      • Estimated Taxes.   The tax rate on the parameter screen is multiplied by the purchase price and divided by 12
      • A Property Management fee, based on the amount entered in the parameter screen
    • The Cash Flow column displays the rents less the expenses
    • The Cash on Cash Annualized column uses the following formula to calculate annualized return
      • (Rental Income - Expenses + Principle Paydown) / (Down Payment + Repair Costs)
      • To clarify, the amount of the principle payment toward the loan is added into the calculation because it is not a true expense, rather it builds equity in the property.
    Was this page helpful?
    Tag page (Edit tags)
    • No tags
    Page statistics
    936 view(s), 7 edit(s) and 2978 character(s)

    Comments

    You must login to post a comment.

    Attach file

    Attachments