How We Figure the Numbers
We only select Active listings that have Rents and Other Income listed; some have not been entered. We can’t do any calculations without the Asking Price and Gross Scheduled Income.
We comb through and make sure the data is as accurate as possible. For example, sometimes the Annual Rents are entered as Monthly Rents. We adjust for that.
We have some basic Factors that we use to do our detailed calculations. These are all based on our experience, analyzing the local market and industry standards. Basic default factors include:
- Insurance (default value is based on industry trends)
- Property Tax (California: 1.25% of the Sale Price / 12)
- Property Management (we use 7% as a default)
- Vacancy Rate (4%; that equals a unit being vacant for 2 weeks out of every year; a good rental should re-rent in that time period)
You can change any of these factors at any time to tailor the calculations to your own individual situation
The good news is that we do all of this automatically, every day!
The really good news is that you can adjust all of these factors in our “What If” scenario, the SMART Real Estate Investing ROI Analyzer© and in our app!