A tool to help identify good investment properties.

Good investment properties are identified as those that are able to be rented out at a certain rate of return over and above the mortage of the propery in relation to the amount of money invested.

For example;

  • Down Payment $20,000
  • Property Cost $100,000
  • Mortgage $600
  • Rent $800

Rate of return is calculated as follows; (Rent - Mortgage) / Down Payment (800 - 600) / 20000 = 0.01 Annualized it would be 12%

Will be using the following source for mortgage calculations as they are very well layout out and explained. http://www.hughchou.org/calc/formula.html

  • mortgage calculations
  • future values

The tool will need to be given a number of critieria in order to be able to run its searches. These criteria are identified as follows;

  • region (zip code(s))
  • desired percent return
  • down payment
  • percent of property cost down payment to equal

A couple of possible alerts;

  • when the property is no longer available
  • change in price of property

Best option would be MLS, but need to get access to all the various MLS listings around the country, could be expensive and lots of programming for each one

Another option is to just scrap off realtor. Not all properties are listed here though, but may be able to be used to identify good regions


218 Words

2006-06-27 20:00 -0400