Krunching: A Tool for RE Investors
Over recent months, commentors have been discussing buy v. rent and whether it is a good time to buy investment property. I have never aspired to be a landlord, but I have friends who have bought investment property or a duplex to live in and rented one unit. I recently wrote about this topic in “Multi-family Dwellings: Tips and Leads to Consider.” But the skill set to determine what is feasible in this realm and to keep on top of it on a regular basis is beyond me. That’s where Krunching comes in.
Developed by two Realtors who run two California brokerage companies dealing exclusively with property investors, Krunching gives you the lowdown on current listings, and whether they would make sense financially to purchase, short or long term, and rent out. The data is presented in a simple and straightforward way, although much like our recent post “Making Magic Happen: The Scoop on List v. Sold Prices,” this data is just a guide to the investor, and should not replace the advice and wisdom of an agent specializing in this type of dwelling.
The property report on a given listing will have the basics and a map at the top, with listing description, MLS pictures, Actively and Recently Sold Comps, Rental Comps, and Investment Summary. For more detailed information, you can sign up as a member of Krunching (at no cost). The rental Comps gives low, median, and high rents for similar units, while the Investment Summary provides a break-even purchase price and cash flow analysis. I must admit that this last chart had me confused, and rental rates went up in year 2 and then dropped considerably in years 3, 4 and 5, but that’s why they are doing this and not me.
I did a few sample reports based on properties listed in the above-referenced multi-family dwelling post. In most cases there were no comps, which isn’t all that surprising. They do use prevailing market rents, which is a bit skewed at times, based on actual rent collected. But again, this is just one tool in the toolbox to use when considering investment property.
