STRATEGIC OPTIONS SOURCES SINGLE FAMILY RESIDENTIAL ASSETS NATIONWIDE, THROUGH VARIOUS RETAIL AND WHOLESALE CHANNELS.
DATA POINTS WE ANALYZE
- Economic growth and inflation on a year over year change basis to forecast housing market trends.
- Population trends, and migration patterns.
- Appreciation rates.
- Supply of re-sales vs. new builds.
- Price cuts and rising Inventories
- Historical annual growth in rents to predict rent increases or decreases.
- Supply and demand conditions for rental housing
- Wages, unemployment, and economic trends to measure the strength of the local economy.
- Business friendly local, county, and state governments.
- Low taxation rates.
- Favorable landlord laws.
- Vacancy rates.
- Rent increases taking place faster than the rate of inflation or wages.
- Balance of home prices rising above inflation and wages.
ASSET VALUATION
We compile assessment factors for an asset, and run a thorough valuation analysis to determine the price that should be paid. In addition, we perform a market rent analysis to determine the fair market rent an asset is expected to produce. We finish our evaluation by calculating the expected ROI using unlevered cash.
PUTTING THE DATA POINTS TOGETHER
WHAT WE LOOK FOR IN AN ASSET AND THE ASSET LOCATION:
- High probability of maintaining positive cash flows.
- Potential of maintaining a high cap rate.
- increasing appreciation rates.
- Turn-key properties with a positive cash flow from the start.
- Growing demand for rental properties.
- Areas conducive to work from home workers.
- School districts that have good ratings.
- Low crime rate areas.
- Temperate climates.
- Steady population growth.
- Located in or near tech hubs.
- Near employment centers.
- Close to major transportation corridors.