New tool helps landlords calculate cash flow property opportunities
Zillow.com has added a rent estimating feature they call “Rent Zestimates”.
“Buyers and renters are not exclusive categories — many people are considering both options when shopping for a new home,” said Zillow CEO Spencer Rascoff in a statement. “Similarly, many would-be sellers in today’s housing market are considering whether to become landlords rather than sell at a loss.”
In addition, the “Rent Zestimate” feature can help investors evaluate the cash flow potential of an investment property they are considering purchasing.
For example, one of our current listings, 9536 Richwood Lane in Port Richey, FL, is listed at $49,750. Zillow estimates the rent at $724/month. They also estimate the monthly mortgage payment, with a 10% down payment, at $387/month, including taxes and insurance. If we round the rent figure down to $700/month, this still leaves a nice $313/month positive cash flow.
So the Zillow “Rent Zestimate” is a nice feature to quickly get a rough idea of what a property would rent for, to help investors do an initial cash flow assessment of an investment property they are considering purchasing.
Leave a comment below and let us know what you think of Zillow’s new “Rent Zestimate” feature
.
