If history has taught us anything, it has taught us that the way to wealth and a secure financial future is through real estate. And if you’re in real estate or thinking about getting into real estate for business, personal, or investment opportunities, right now is a great time to get into it. Like anything, there are a variety of ways to ensure that you’re successful. One of the best ways to be successful in the real estate business is by having a rental analysis done before you invest.
What’s a Rental Analysis?
In a nutshell, a rental analysis is done to find the winners and losers when it comes to properties that have the potential to make the investor or property owner money. A rental analysis is usually performed by investors to determine if a property is worth investing in. The end-goal is to identify properties with positive cash flow, anywhere from a few hundred dollars a month to thousands of dollars in positive cash flow per month. With that said: A complete rental analysis involves at the very minimum, three things.
As it is in life, success has a formula. It’s no different in real estate. There is a formula for doing a proper rental analysis, and it involves calculations to ensure that the price you set places you in the perfect position to secure renters as well as profit as much as possible. To help determine the price of your rental property, you must calculate the price per square feet of comparable properties, the adjusted price per square feet of comparable properties, and then multiply by the square feet of properties for sale. These numbers will help determine your price while ensuring that your price in not too high or too low.
Simply put: A rental analysis is by far one of the most important steps to take, if not the most important step to take prior to investing in a property that you plan to rent. However, it can also be a complicated one. But reputable companies provide free rental analysis to ensure that investors like you win in selecting the best properties for the most profit. Click the link below to get your free rental analysis today.