Rentometer is an online rental income analysis tool which gives you accurate rental data. Utilizing Rentometer review for your rental business will allow you to find the rental income from a property before you buy it.
As I run my rental property business, having accurate numbers is the key to being successful.
If you do not have the right rental income for the prospective property, you may buy a house that does not cash flow enough for you to make money.
Also, don’t forget the rentometer promo code at the bottom of this page.
Having a rental property business is all about making money every single month. Any make it in the form of monthly cash flow in passive income. We do not invest for appreciation. Appreciation is nice but not what we invest for.
When you have the rent amount exceeding the expenses you owe for the property, that is when you make money. Income less the expenses is your passive income.
Obviously, you need to have accurate numbers in order to predict if a property will make you money every month.
Here is how you make money with rental properties:
Income – Expenses = Profit
For example, if you have a property that rents for $1,500, and your expenses are $1200 a month, then you profit $300 every month.
As long as you keep the property, you will make passive income over and over again. It is not until you sell the property that you finally lose the ability to make that passive income each month.
$1,500 – $1,200 = $300
Now that is just one property making you $300 a month. And in one year, you will be making $3600 in profit without doing any work.
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Scaling the Rental Property Business
Now imagine if you had 10 rental properties making $300 a month. That is $3000 a month in passive income without you doing any work. And that would be $36,000 a year in passive income profit.
The larger you grow your business, the more money you make. And that is the beauty about rental property investing. The more money I make, allows me to buy more properties, which allows me to make even more money, to buy even more properties.
Pretty soon you have enough money to stop working your job because your income exceeds your expenses. It took me six years to acquire 19 rental properties that made me a minimum of $300 a month in passive income.
How Rentometer Helps You Become A Successful Real Estate Investor
You never want to buy a property that will lose you money every single month. And a sure way to buy a bad property is if you do not have accurate numbers before you buy the property.
The rental property investing business can be a very predictable one. Your income usually stays pretty close to the same every month. Going into a property with the rights amount of expenses and the right amount of rent you can collect will show you how much money you will make every month.
Even though there are other evaluation sites out there, not many have this many data points just for rental prices for single family homes. Zillow for example only shows you one that point which is there estimation for the rental income for property.
In any business, more information is better align you to make a more accurate decision. Also, get the rentometer promo code at the bottom of this page.
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The Difference Between Rents
If it is a low amount, then it is telling me that a property can rent for $1900 a month but it can only rent for $1700 a month realistically.
Then I would be losing $200 just because I did not know the right numbers. That is a huge problem when you are trying to find properties that can make you $250 or more each month.
If you plan on renting a property for $1900 and believe you can make $250 in profit then you’re counting on the property to be rented for $1900. That means your expenses would be $1650 a month leaving you $250 in profit.
Now if you’re rental income was only $1700, then you will only be making $50 a month in cash flow profit. That is too thin for any investor to live on.
And let’s say you mistake in the amount of taxes you will pay each year on the property. If you have to pay an extra $550 in property taxes because you missed the correct tax amount, then all of your profits are wiped away.
Always get the most accurate information for your business. And get the rentometer promo code at the bottom of this page.
Using Rentometer As A Real Estate Investor
The user interface is very simple and easy to use. As long as you know the address of the property you are looking to buy, you can find what the average rental rate would be.
Now Rentometer doesn’t tell you exactly what the rent amount will be. That is up to you to make a business decision on what the total rent amount is.
I personally would rather have more information about the other properties and how much they are being rented for rather than someone telling me exactly how much rent I should get for the property.
Step 1: Enter the Property Address
1. When you get started using Rentometer type in the address in the address bar and change the amount of beds in the property and click analyze.
Step 2: Verify the Address and Notice the Average Rental Rate
Average Rent Rates for Similar Properties
In the image below, you can see the average rent amount for the properties in this two-mile radius around the property. The average is $1650 a month for every property that is four-bedroom with similar characteristics as this property.
Another great thing to notice is the lower 25th percentile showing all the lowest and probably worst properties in the area rent for $1320 a month. It also shows the highest 75th percentile in the area renting for $1995 a month.
Historical Trend Line
Another very good piece of information that Rentometer gives you is the historical trend line. It really shows you the history of the rental rates in the area for the past two years.
You can see the trend as it has been going up since 2017.
If you notice in January 2019 in the image below, the rates were dropping but then shot back up.
This is probably because a few other properties in the area became rentals and increased the comparable rental rates for this property.
Average Rent by Bedroom Type
The average rental rate by bedroom type is all single-family homes between one and four bedrooms. In the chart below, you can see how the rental income doubles from to back into three bedroom but only goes up by a quarter from prevented before bedrooms.
This can be a good indicator that buying a rental property with three bedrooms will give you a good return on your money. Since three-bedroom homes are cheaper than four-bedroom homes, it may be better to stick with three-bedroom homes.
The increase in purchase price for four-bedroom home may not be a good return on investment instead of buying a three bedroom home.
Step 3: Analyze the Data Points Given by Rentometer
There are so many more data points given to us by Rentometer which gives us more information to make a good decision on a property. The list of properties either for rent or that have enlisted for rent recently our great indicators of how your property will rent.
Even though Rentometer does sum everything up for you, it is still a great idea for an investor like us to review the different comps in the area for the rents.
Because of all this information, you get a sense of which properties they are considering in the rent value and then can weed out properties that you do not believe fit or are comparable to your property.
Step 4: Review the Property Characteristics
Be property characteristics will show you more information about the property you may be buying.
How many bedrooms, how many bathrooms, when it was built, square footage, etc. are all great pieces of information that will help you make a good decision.
The tax information section will show you how much you will need to pay in taxes every single year to the county. I do not see any other special assessments in this particular property but that is something you should always watch out for.
Taxes can creep up on you and he into your passive income.
The sales information will show you previous sales and how much it was sold for. This is great information to see how much the previous owner or current owner paid for the property.
It gives you more information when you go to put in an offer for the property. If the homeowner bought the property for $50,000 and is now trying to sell for $300,000, you can see that most likely they have some room to come down on the purchase price.
On the deed for the property, if there is a mortgage, it will be recorded as a lien against the property. This means that the mortgage bank can take back the property if somebody does not pay the mortgage each month.
This is also very valuable information for your negotiating when you buy the property. You can see how much the person owes and adjust your offer price accordingly.
Step 5: Search for Other Properties With The Area Searches
Another great aspect of Rentometer review are the other searches that it has.
Neighborhood search, ZIP Code search, City search, are all valuable pieces of information when you’re looking at a new area of the country to start investing.
Now this doesn’t take the place of searching for a specific property. What it does do is help you as you are looking for a new area of the country to invest, you will be able to find the properties that fit your criteria.
You can even drill down into a specific neighborhood instead of an entire city. Certain neighborhoods have more crime than others so rent prices go down.
Certain neighborhoods and better schools, so rents go up. So looking at properties with an overview of the neighborhood is a great way to find a good area to invest.
Step 6: Get $100 OFF a Year Membership With This Promo Code:
Rentometer is a great tool.
It is even better if you get it for $100 off with the rentometer promotion code!
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Now get out there and start investing!
Let me know how you use Rentometer review for your real estate investing business. Be sure to put in the rentometer promo code to get your discount!
Find out how to create a 6-Figure real estate investing business to help you quit your job by investing in rental properties.
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