Real Estate App
Dependencies
pip install flask pip install pandas pip install matplotlib pip install Pillow pip install customtkinter pip install TinyDb
Analyzying a property (Specific)
- Common expenses: Taxes, Insurance, Flood Insurance, Water, Sewer, Garbage, Gas, Electricity, HOA fees, Snow removal, Lawn care
- Vacancy / Repairs, CapEx,
- Cash-on-cash return on investment (CoCROI) = total annual cash flow / total investment to see if it returns better than 10% which is the avg stock market APY
- 50% Rules - Expenses tend to be 50% of the income, not including P&I. The expenses included in this calculation are taxes, insurance, maintenance, repairs, vacancy, capex, property management
- Purchase Price, Closing Costs, Pre-rent holding (time it takes before you can get it rented out)
- Estimated Repairs
- 2% rule - The rent you get should be roughly 2% of the total purchase price
Analyzing Area (Broad)
- Areas near high crime neighborhoods may be associated with crime or not depending on public perception by locals
- locations are ranked on an academic grading scale A-F
- use www.greatschools.com to get school rankings
- Check unemployment rates in an area to help know if you need to screen tenants more so for secure jobs rather than temp ones.
- www.usa.com/rank for population growth trends
- www.nahb.org housing starts and build permits can predict pop growth
- Public Transportation is important for ppl to get to work
- Be close to grocery stores and other local businesses
- Price-to-rent ratio is avg monthly rent / median purchase price of homes (take number with grain of salt)
- Calculating vacancies:
- Census - U.S. Census Bureau
- Agents - can look at MLS to show avg rates of vacancies in an area. Ask agent to do a comparative market analysis on local prop stats
- Property managers - give them a call about a particular area. Helps interview property managers as a potential client
- 10.6% avg high for vacancy rates nationwide, 7.6% avg, 5% avg low
- Property Tax / Insurance Rates