The Mechanics of locating the right Single Family Investment Property

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Kristopher Franks
Delivering the Bottom Line
Posted On : 05/26/2019

In my last blog, we talked about some general strategies to help investors find high performing SFR properties during a period of appreciating real estate markets. Now, let's focus on the mechanics of picking out some of these properties yourself. In the world of high tech, buyers and sellers are becoming more educated than ever about buying and selling real estate. However, with the vast array of tech start ups entering the playing field, knowing which website to trust in terms of reliable information and data is critical. Don't waste time on the wrong sites or trying to work with a plethora of different sites. First of all, make sure the website has a direct feed to local MLS services giving the site 'accurate' data for the given market. Investors point out properties to me from a variety of sites where the data is often out of date. Many times, the home is no longer for sale. Also, few sites provide accurate analytic data for the analysis of SFR investments.


Try going to https://www.propshub.com to get started with your search. The data is fresh, pulled direct from the MLS, and they site engineers keep the site running well with updated demographic data as well as a proven method of analyzing properties. It is not 100% in terms of analysis, as with any site, it relies on algorithms and statistical data. BUT, it is definitely reliable and enough to get you started and point you in the right direction.


One great feature is being able to enter the amount of money that you are wanting to start with. Let's say you have $50,000 to get started. You simply enter that into the search box on the home screen, and you will be prompted to select the various markets you're interested in. From there, you'll get a list of properties in those markets starting with the highest cap rates. I can definitely help you in the DFW marketplace, and if you are interested in some of the other metro areas, just let me know, and I will get you in touch with a competent realtor/property manager in that area.


Once you select a property to check out, be sure to click 'Calculate ROI' in the property detail page. It'll give you a return analysis of the property that looks like this :



As you can see, there's a lot more to analyzing the return on real estate that most people realize. You can look at it from the perspective of cash on cash return. This is simply a measure of the amount of free cash flow every year divided into the amount of initial investment. Many are concerned with this type of return, as it is easy to measure and provides income now. However, that is just the beginning of the money you can make in real estate. You also have long term appreciation of the asset, tax minimization, and the power of leveraging. In my next blog, I'll go into more detail on the power of leveraging and how to build a large nest egg by making small investments of 30K to 50K at a time.


For now, I hope you enjoy perusing PropsHub. If you find something in DFW that you love, let me know if I can help you!