6 Tips for Evaluating Investment Property Rent Rolls

By
Real Estate Broker/Owner with Frank Rubi Real Estate, LLC La Broker 09995688826

Big Easy Real estate Notes
by Frank Rubi
www.7824.com
 Six Step to Evaluating Rent Rolls

In order to begin to look at investment property value, one should look at the rent rolls. The rent rolls should include at least the following information:

•1.     Address of Units

•2.     Type of Units: if they are 3 bedroom and 2 baths.

•3.     Schedule of Rents: actual rent collect for the last 6 months.

•4.     Other income: laundry room

•5.     Lease or Rent terms: If tenant is new or about to move out.

•6.     Deposit on Hand

At the act of sale this information plus all files, deposits and keys should be transfer. One quick way I evaluate rental property value is to look at the total rents. Let's say the property is for sale an asking price is 319,000. It is a four Plex. The total rents are 3350.00 per month. I take the $3350.00 and multiply by 1000. That gives me a value of 333,500.00. This at least let me know if there may be a value play as an investor. This is just the beginning. For more information on purchasing rental property call or email. I have purchase several properties over the years and will be glad to answer any questions.

 

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Rainmaker
601,160
Lindsey Hasford
Edina Realty - Elk River, MN
Bringing you home...

I just saw rental unit washer/dryers at the store the other day and was wondering how landlords figure it all out. Sad thing is... I'm a landlord.

Jul 24, 2008 02:39 AM #1
Rainmaker
388,619
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

OK Frank get those rent rolls up and the value goes up right?

Jul 24, 2008 12:45 PM #2
Rainmaker
254,432
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management

You are right about just the beginning.  Also consider location, collection history, and maintenance to name three.  Any of those really affect value one way or the other.

Jul 24, 2008 06:26 PM #3
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Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

John, My position in this post is to evaluate whether to move forward with DD of a consider property. My first instinct in looking for investment property is the rent rolls. If you use my cook book method of interpreting the rents this will dismiss some under preforming properties.

Jul 25, 2008 01:22 AM #4
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Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

Robert, I fully agree with you there is so much more information needed to make a commitment. "The rent rolls should include at leastthe following information". When purchasing two and four plex's these mom and pop types relye more on there memory than excel spreadsheets.

Jul 25, 2008 01:26 AM #5
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