Buying a rental property is a serious investment of time and money. One that successful investors never take lightly. To do it right, investors should always do their due diligence thoroughly to make sure it’s a good deal.
Rental properties have a lot of due diligence associated with them. Rental owners will want to know many statistics about the area. Good neighborhoods attract good renters and higher rents.
To see if a neighborhood is a good one, investors will (among other stats) check out:
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Crime statistics
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Quality of schools
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Proximity to highways for commuting
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Local attractions
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Access to grocery stores, restaurants and other essentials
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Local vacancy rates
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Average incomes
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Home ownership vs. renting
There’s a problem with good deals though. They never seem to stick around for long. People like good deals. There’s a lot of competition out there for them. The saying ‘you can’t steal in slow motion’ is very applicable here.
How do you balance jumping on a good deal quickly with making sure you can do all the research necessary to protect yourself?
There are really two ways. The first is to pick an area and learn about it very well, before starting to look for properties. That way when you find the deal you want, you already know most of the statistics and can jump on it quickly. Knowing an area ahead of time works well, but it limits you to a single area.
What if your network or advertising brings you a smokin’ deal in the next town over? Would you have time to do all the research before they gave it to someone else?
Now you don’t have to take all that time. You can just go to a website and download a report about the new area.
That website is RentFaxPro
How RentFaxPro Works
RentFaxPro was started by two guys with extensive experience in residential property management and construction. They drew from their experience to put together databases of information that could be used by residential real estate investors.
So now, you can purchase reports of statistics for your area for very small amounts of money that might make or save you thousands in rental income later on.
When you get to the website, there are brief explanations of what RentFaxPro does, as well as a free e-book on finding profitable rental properties. Scrolling down on the page shows how RentFaxPro helps you evaluate rental properties.
They divide their evaluations into three areas. Within each area there are several reports you can run depending on how much detail you would like to see:
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The RISC Index – RISC stands for Rental Income Stability Composite. The index tries to predict the likelihood of a local event that might interrupt the stability of your rental income (crime, businesses shutting down, etc.). The higher the score, the less likely an event will disrupt your rent. There are two indexes – one comparing your area to the surrounding towns, and one comparing to the national average.
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The Rent Radar – These reports present data for average rental incomes, vacancies, and potential credit losses using a variety of data analytics. They present the information in various reports. Here is a sample of what the data looks like:
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Real Results – The reports you have all been waiting for! Based on the address, square footage and number of bedrooms and bathrooms, RentFaxPro creates a ProForma (predictive) income statement of what you will bring in for rent vs. average costs in the area. In other words, this report will show you the money.
You can see sample reports for each of these areas at the bottom of the homepage. Some of them are very detailed. And best of all, they are available for downloading very quickly, once you enter your information.
That way you can be ready to make a deal, instead of letting it slip through your fingers.
RentFaxPro Pricing
As you will see from the examples on the homepage, RentFaxPro has a variety of reports available for purchase and download. Rather than pricing each individual report, RentFaxPro sells ‘credits.’
Each report is worth a certain number of credits. Investors will purchase a number of credits ahead of time, and then redeem them when they want a particular report.
This table below gives you an idea of how many credits are needed for each report, along with pricing for credits. Volume discounts are available, as you can see:
How To Make More Money with RentFaxPro
Not only can RentFaxPro help you determine if a property you want to buy is a good deal, but you can help others as well. And you can profit from the help.
RentFaxPro has an affiliate program that will pay you a commission for promoting their product. If you are a wholesaler who sells houses you find to investors, you can promote RentFaxPro to your buyer’s list and earn a commission every time they download a report about your property.
You could also promote RentFaxPro to Realtors in your area so they can download reports of rental properties they are trying to sell.
RentFaxPro gives you the knowledge and information you need to make an informed investment decision. It is a good idea to check out information from more than one source when making a decision as big as purchasing a property...
But for a thorough, quick look at a new area and/or a new property, RentFaxPro really helps.
Do Due Diligence – There will always be surprises when investing in real estate. The trick is to minimize the surprises.
Learn Your Area – The more research and preparation you can do ahead of time, the quicker you can act to ‘steal’ the good deals when they come.
Spread the Word – Once you are ready to move, spread the word that you are looking for deals, and that you can make them happen when they appear.
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.