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FAQs on Simply Do It – Cashflow, future value, finding properties, improvements and service

Posted by Powered by Simply Do It on May 15, 2024
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How did you estimate the cash flow at 256/m. I see that the rent (lower) is 24,000/year while the expenses are 23,868/year. It seems that the positive cash flow is very marginal.
  • We are assuming a small annual increase in rent and some rise in expenses. Instead of looking at cash flow based on just one year, we evaluate it over at least five years and then calculate an average per month for those five years. As you can see from the data, we account for vacancy, property management fees, HOA fees (if applicable), listing fees, and other expenses. It's important not to overlook the small costs.
  • How did you estimate the house value in 5 and 10 years? What rate did you use? On what did you base it on?
  • We assume the property value will increase by an average of 4% each year. This isn't guaranteed, but over the past 10+ years, the annual increase has often been higher than 4%. We expect some annual growth when holding a property for a long time, but we prefer to use a conservative estimate close to the inflation rate.
  • How do you find the assets? Are you searching through Zillow or any other platform from here and analyze the market or do you have a local team that assists you?
  • We mainly rely on local Realtors and our team to find suitable rental properties. We carefully select and vet these Realtors, training them on what types of properties to look for, which areas to focus on, and the specific criteria to follow. Once they identify potential properties, we analyze them using our financial model (Excel) and thoroughly evaluate them to ensure they meet both financial and quality standards. It’s a rigorous process, and we review many properties to find the few that actually qualify.
  • How do you estimate the improvement? Did you already have someone in the house?

    Evaluating the improvement costs is a moving target. It starts with a ballpark figure based on the information we get from the seller's agent. This figure becomes more accurate as we go through the process, conduct inspections, and have our representative walk through the property. The exact cost won't be known until we do the actual inspection, so we use our diligence and experience to provide a conservative estimate.

    How does your service usually work? What's included?
    We provide comprehensive support throughout the entire process, from the initial purchase to a potential future sale many years down the line.

    Our approach revolves around two main areas: the purchase phase and the ongoing ownership phase. During the purchase phase, we present you with qualified properties and help you determine which one best fits your personal preferences, criteria, budget, and strategy. We guide you through selecting a suitable property, making an offer, addressing any issues that arise during the purchase process, and ultimately reaching the closing stage. Your input, along with the efforts of our local team, is crucial every step of the way.

    Once you own the property, our support continues as we assist you with any situations or issues that may arise over the years of ownership. We have carefully vetted property management companies in each market we work with, and we negotiate favorable terms on your behalf. Even if you own only one property, you benefit from our collective buying power, as you are part of a larger group that property managers prioritize.

    Furthermore, we provide guidance on when to consider selling the property in the future. Along the way, we offer suggestions to enhance cash flow and overall property ownership, ensuring that your investment becomes even more successful than initially planned.

    Our ultimate goal is your success. We understand that satisfied clients are likely to return for more investments and may also refer their friends and family to work with us. Your success is our success, and we are committed to helping you achieve your investment goals.

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    Disclaimer

    Information contained herein was obtained from sources deemed reliable, however, Simply Do It and/or the owner(s) of the property make no guarantees, warranties or representation as to the completeness or accuracy thereof. The presentation of the property is offered subject to errors, omissions, changes in price and/or terms, prior sale or lease or removal from the market for any reason without notice.

    The analysis is provided “As Is”. All the information is believed to be accurate (except for the small effects of some simplifying assumptions), but is not guaranteed, and depends on the values entered for the property. This analysis is intended for the purpose of illustrative projections. The information provided is not intended to replace or substitute for any legal, ac

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