Quick Analysis Method

[Anthony Doukas]

I am analyzing 3 properties a day from the MLS. I was looking for a little feedback on my overall method for quickly screening property deals when trying to decide if I should do a deeper dive. I was especialy looking for feedback on quickly estimating expenses. This whole process takes about 15 min per property for me now that I have done it a bunch. Most properties on the MLS don't come close when using this process, but I have been told to expect that.

Verify Sale Price: Quick look at Zillow for what has sold that is similar in the last 3 - 6 months. 

Est. Mortgage: I run a quote from my broker through an app and 

Tax & Insurance: I pull tax data from the county website and run a quick insurance quote for those numbers

Est. Fair Martket Rent: I pull from the MLS listing and also look at some comps from Zillow that are up for rent at the time and are in similar condition

Prop Manager: I assume 11% total. 10% for month to month expense and 1% extra for added costs of getting a new renter in place. 

Repairs & CapEx: I have been told 5 - 15% is reasonable and I assume 10% almost always since I don't really know much.

Vacancy: I usually assume 8% which equates to 1 month vacant per year. Obviously going to work hard to make that much less. 

Lawn / Snow: I assume $100 / month for lanscaping generally. 

Water: If water is included, I usually assume $50 / unit. 

I also do a quick look at crime overview for the town (assuming it isn't a huge city) on the free version of neighborhood scout and the high school for the property. I also do a quick google search for starbucks and whole foods in the area for indicators of higher income. 

If after all this the prop cash flows $100 / month / door or more, has > 8 - 10% CoCRoI, and schools and crime are reasonable I put it in the que to do a deeper dive and possibly make an offer. 

Thank you in advance for your thoughts and feedback.