Once the market value is determined, use financial calculations such as cap rate and GRM ( gross rent multiplier) to see if the potential returns meet your investment goals. You can also research listings on Zillow and, and also see what investor-owned rental properties listed on Roofstock are going for.
Real estate agents with access to the MLS will run comps for free. Create a comparative market analysis (CMA) of homes similar to the one you are looking at that have recently sold, are active listings for sale, or have gone off of the market unsold.
One way of estimating the value of a rental property is to do what an appraiser does. That way you can compare the values and create a value range of low, middle, and maximum value. It’s a good idea to use different techniques. There are a number of methods for estimating the fair market value of a rental property. Next, set up your rental property analysis spreadsheet by following these four steps: 1. Doing a rental property analysis on a spreadsheet makes updating much easier when you are analyzing multiple options before choosing the best property to invest in. How to Create a Rental Property Analysis Spreadsheetīegin by choosing a spreadsheet software program such as Google Sheets, Microsoft Excel, LibreOffice Calc, or Open Office Calc. Simplify your rental property reporting Learn More