by John Hill
As demonstrated in our weekly investor picks, NTREIS data gets us started with the data needed to assessa rent house. It lists bedrooms, bathrooms, square footage and age, but to identify investment property, these things need to be converted to rent and expenses to determine cash flow and return.
Barnett & Hill makes this conversion through econometric modeling that translates these attributes into rent. This model is based on NTREIS data we analyze each month. This data is updated routinely to reflect the ever-changing nature of rental trends in Abilene
When viewing listings through Barnett & Hill, you'll initially see an estimation of rent, months to payoff and cap rate for every listing, regardless of whether it was listed by Barnett & Hill. If you need more details and an explanation of the cap rate's derivation, you have can expand the information to see our evaluation of this property as an investment property.
We don't do this calculation for all Abilene real estate listings. It wouldn't make sense to calculate a cap rate for a million dollar home. Homes must be under 2,750 sf and under $275,000 in price before our cap rate analysis is applied. Don't misconstrue: we aren't saying that a 2,750 sf home selling for $100/sf makes an ideal rental. What we are suggesting is, perhaps, that $275,000 house you want to rent for several years is really a home and should be sold as a home (and selling homes is something Barnett & Hill does, too).
Barnett & Hill recognizes that time compromises deals. Our return sheet and cap rate allows our investors to quickly vet their next rental. See how it works for you by viewing our weekly investor picks featured on our site.