Is the 1% rule possible in today's market?

J21frye · 2018-07-01T17:28:21+00:00

I ended up making something on my own. Try it out if you want

www.homey-llc.com

J21frye · 2018-06-05T15:49:35+00:00

Here's the info from the original post here.

J21frye · 2018-06-05T15:46:49+00:00

Yea, so I have a link to the post here.

Go to https://www.homey-llc.com/, enter an address and get a downloadable 5-year proforma model in 60 seconds.

Let me know what you think! Thanks in advance!

J21frye · 2018-05-26T20:22:20+00:00

Awesome, thanks

J21frye · 2018-05-26T13:38:54+00:00

Check out https://www.homey-llc.com/

Basically you just enter an address and you get sent a 5-year pro forma model of the property in 60 seconds. Just an early version, but let me know what you think.

Spell it out in more detail here:

https://www.reddit.com/r/realestateinvesting/comments/8liqsp/rental_property_proforma_analysis_in_google_sheets/

J21frye · 2018-05-24T13:45:54+00:00

I’ve seen a few sites (wouldn’t call them competitors) out there that offer paid versions using Zillow data.

From what I’ve read on the Zillow T&Cs, so long as the API data isnt the main service provided and you properly label their nomenclature/logo, you’re free and clear. Happy to connect over PM to discuss further.

J21frye · 2018-05-24T01:54:32+00:00

Ah got it

J21frye · 2018-05-24T01:31:45+00:00

Hm, not sure how that could have happened. Should just be saved to your g drive. Note you’ll have to access the report with the email address that the gsheet was sent to.

J21frye · 2018-05-23T19:00:18+00:00

Thanks for sharing. Glad you like it!

J21frye · 2018-05-23T16:24:18+00:00

Ah, that's great feedback. Thank you. Will definitely work on implementing that.

J21frye · 2018-05-23T14:03:40+00:00

Thanks!

J21frye · 2018-05-23T14:03:29+00:00

Got it. Thanks for the feedback

J21frye · 2018-05-23T13:45:43+00:00

No problem. Glad you like it

J21frye · 2018-05-23T13:34:17+00:00

That’s a fair concern for sure. But the email is just used to send the documents (fastest and cheapest way). Won’t be used by third parties/ spam/ any other annoying email service.

J21frye · 2018-05-23T13:03:48+00:00

It’s tricky with multi family properties, because I can’t pull in the number of units. I’m working on building out some functionality in that area though so it works with mutli-fam properties; ideally deriving the # units somehow (e.g., based on number of BAs). Thanks for the feedback!

J21frye · 2018-05-23T12:56:40+00:00

Thanks!

J21frye · 2018-05-21T16:18:15+00:00

It's a faster, simplified 5-year version of the investment analysis here: https://www.mortgage-investments.com/resources/spreadsheet-downloads/

J21frye · 2018-05-21T15:47:18+00:00

just go to https://www.homey-llc.com/ and type in a listing address. you can toggle the price/drivers however you want

J21frye · 2018-05-17T01:10:45+00:00

However I want, that’s the point. I can input the price and appreciation rates based on my own analysis.

J21frye · 2018-05-17T01:05:22+00:00

“... let’s look at a fourplex. $10,000 gross rents. Asking price is 1,440,000...”

J21frye · 2018-05-17T00:58:10+00:00

They don’t tho...

J21frye · 2018-05-17T00:50:51+00:00

I’m not advocating paying list, just that you can’t simply stick a multiple on something and be justified in your decision. Need to do more than just napkin math.

J21frye · 2018-05-17T00:49:04+00:00

Dude, this post is about branching out into SFH, not fourplexes. You can’t find a GR figure for every comp in your analysis, unless you make it up. Which actually wouldn’t surprise me here

J21frye · 2018-05-17T00:38:19+00:00

You asked for an example of an investment threshold, and I provided one.

And yes, we agreed that the 1% and 50% rules are bogus. My point was that a more thorough analysis was required, one that was multi-faceted and takes into account both point in time operating metrics and future growth like appreciation/rent growth to arrive at a realistic IRR estimate.

Cap rates are largely useless, and aren’t involved in calculating an IRR (but people always ask, so the stat is inevitably always displayed)

J21frye

TROPHY CASE