You are currently viewing A Side Hustle Rental Property!

A Side Hustle Rental Property!

  • Post category:Rental Home

Ever thought of buying a rental property, but didn’t know what to look for?

Check out my template and instructions in the store!

https://samthesaver.com/product/rental-property-business-comparison-tool/

This will help compare properties and show you which make the most sense.

It will help you to gather data, organize, and compare properties.

It looks at everything!

It will compile the data and help analyze everything!

Shoot for a 20% free and clear here, beating the SP500 by double makes the home a no brainer!

It goes over year 1 projections, and more!

NOI, or cash flow from operations here is $5,900 a year, not $12,000, so not ideal!

This will dive deep into everything!

If you just want an overview, use exhibits 1 and 2.

20% return and $12,000 a year are good metrics.

For a little more detail, read on!

It will take some research on a few sites to dig out the data needed for the tool. Look at Padmapper for comparable rents, Zillow for tax history, and something like masslandrecords for the cost of land.

I’ll summarize a few of the steps here to see if this tool is something you want to use!

Step 1: Research

If you want to buy a 5 bed home (2 bed and 3 bed units) use padmapper to gauge comparable rents you can charge. Of course, the home will have to be in similar condition. Fix that property up!

Zillow and masslandrecords are helpful as well for data collection on things like land cost.

You need to know the purchase price, depreciation term, expected year of sale, and mortgage rate terms.

All of this helps calculate year 1 costs.

To gauge profits, you also need to guesstimate the vacancy rate, taxes, repair budget, and capital reserves.

If you can make $12,000 a year, dive in!

But also make sure free and clear return (NOI/loan) is about 20%, free and clear > constant of debt (positive leverage), debt yield is 8-12%, and debt coverage is >1.2.

If this seems like it’s up your alley, check out the store!

 https://samthesaver.com/product/rental-property-business-comparison-tool/

The link above also has all the detailed steps for those wanting to learn more. It goes over how my tool works and what data you need.

Or if this is over your head but you still want to buy a home, reach out. I can analyze homes for a fee :-).

Below also goes over my template!

 https://drive.google.com/file/d/1QbZkyl755Thw9prGdw5bPwXQRMt26SPA/view?usp=sharing