All Forum Posts by: Jim Frye

Check out https://www.homey-llc.com/

Made this after researching/purchasing rental properties in Nashville. 

It’s basically a tool that works with the Zillow api for price/rent and analyzes a property based on (1) location-specific metrics (appreciation rate, tax rate, insurance) and (2) customary expenses (vacancy, prop mgmt, r&m, capex). Also, all the drivers are adjustable within a downloadable google sheet. 

Can also download to excel if you want to tinker with it offline. 

Let me know what you guys think; would love any feedback from this group!

Christian Hutchinson - thanks for the feedback here. 

Awesome! Thanks for the input!

@Jonathan Streufert

Got it. That makes sense. I'll definitely take a look into the areas you mentioned. Where do you look for off-market deals?

@Jonathan Streufert

Thanks Jonathan! I really appreciate the feedback here. It's so nice to get such thorough input, especially from people in the area.

About the analysis (credit: www.homey.com). Although some will probably think it's too simple, it does forecast a bunch of different expenses (e.g., 5% vacancy, 8% prop mgmt, 2.5% leasing fees, 14% repairs/capex). I actually like doing it this way (vs the 50% rule) because I can balance out the expense conservatism with a location-based forecast for appreciation. 

I know Zillow is like the bane of existence for a lot of folks in real estate and I get why. But if I am going to put the time in to nail out the possibility of expenses, I think it is acceptable to balance the analysis with the possibility of a higher appreciation rate (or lower in some areas). 

I get that any appreciation figure other than the standard 3% is looked down upon, but I think it helps when I'm evaluating a bunch of properties (e.g., nashville vs detroit area).

Anyway, I do like the metrics you pointed out (1% rent-to-price), and yes, $100/month in CF is probably too light. (And I know I stated it before, but the analysis is based on the list price and advertised market rent).

Other than Oak Park, what neighborhoods are people still excited about? I've heard Jefferson Chalmers or East English Village area isn't too bad for SFR.

Thanks for the feedback here. Couple things:

(1) the price of $132.9k is the bases on the listed price

(2) the rent of $1.3k is what is was listed for on the property in Sep’17 (I know still not perfect)

(3) from what I can tell, it’s in solid shape. Some relatively new updates to major capex items (e.g., roof/furnace) 

Just closed on my first SFR property in Nashville. Now trying to make my second SFR investment in the Detroit area.

Would love any feedback on what people think of the area and my assumptions/estimates here. Thanks in advance!

https://docs.google.com/spreadsheets/d/1sF2XVHTK4IN7sYywKC51lYvIJ5JIbB43IharPgZZVI0/edit#gid=1078050668

@Jason G., solid case study. This discussion is full of some gems. Overall, it seems like RoofStock's pro-forma financials have a decent amount of conservatism built in. 

Though it's probably too early to say with much certainty, could you comment on their forecast vs your actual results?