This blog was originally published by Marshall Reddick Real Estate Network.
As CEO and Partner of MRREN, Mr. Nelson is responsible for managing the investment groups, brokerages, and real estate service relationships as well as overseeing investor transactions. He acquired his first investment property at age 23 and many since. Mr. Nelson also has been a licensed California Real Estate Broker since 2009.
Introducing the New Financial Evaluator from MRREN
It’s fast, it’s fun, and easy to use! Our new mortgage calculator with built in cash flow forecasts and annual Cash-on-Cash Returns is here! You can even find out your 10 and 20 year projected profits based on average appreciation rate, annual cash flow and principal pay down. THIS THING ROCKS!
All of the blue cells are customizable to your property. To start: click on the blue (Property Address) bar and fill in the address of the property you are considering.
Line 9: (right side corner) enter the square footage. This will auto-calculate the price per square foot when sales price is entered.
Line 10: Enter sales price.
Line 11: Enter percentage down payment. Note: Conventional down payment guidelines allow for a 20% down payment on SFH’s unless you have 4 or more mortgages in which case 25% down is the minimum. For 2-4 unit properties, 25% down is the minimum unless you have 4 or more mortgages in which case 30% down is the minimum.
Line 13: Enter interest rate on loan (CLICK HERE to contact an MRREN approved lender to find out your rate).
Line 14: Enter term of loan in years (We suggest 30 year fixed rate loans).
Line 20: Enter projected monthly rent (Be conservative!).
Line 22: Enter vacancy rate. Note: We have found that 8% is a safe number to use as this allows for one 30-day vacancy every year. This will vary based on the market you are buying in. Consult an MRREN advisor for more details.
Line 27: Enter annual taxes.
Line 28: Enter insurance quote.
Line 29: Enter maintenance factor. Note: This will vary based on the age of the property, condition and quality of property management. Better screening of tenants usually means less maintenance issues! We typically use 8% unless the property is new or newer which we sometimes allow 4%-6% for, but we suggest using 8% just to be safe.
Line 30: Enter property management percentage. Use MRREN approved property managers for reduced rates!
Line 31: Enter HOA fees if any.
Each time you change a value in a blue area, it auto-calculates a change in an adjacent cell value. When completed, this gives a clear picture of your investment. It is particularly helpful when comparing one potential investment property to another.
You can download the MRREN Investment Analysis in Microsoft Excel now by clicking this link: http://www.mrren.com/analysis.xls
We hope you enjoy our efforts! Call one of our Real Estate Advisors for professional help when evaluating properties and comparing markets.
We’re here to help at: (949) 885-8180
Have questions about your Landlord Insurance or Business Property Insurance? Huggins Dreckman Insurance can help. Call us at 562-594-6541 to get a free quote today.