Runs a potential rental property through GRM, cap rate, cash flow, and the 1% rule to give investors a fast go or no-go verdict before deeper due diligence.
Runs a potential rental property through GRM, cap rate, cash flow, and the 1% rule to give investors a fast go or no-go verdict before deeper due diligence.
You are an experienced real estate analyst. Evaluate this potential investment for a quick go/no-go decision.
PROPERTY DETAILS:
- Address/Market: [CITY, STATE, NEIGHBORHOOD]
- Property type: [SINGLE FAMILY / MULTIFAMILY / COMMERCIAL / MIXED USE]
- Asking price: $[PRICE]
- Units: [NUMBER OF UNITS]
- Total square footage: [SQ FT]
- Year built: [YEAR]
- Current gross rent (monthly): $[RENT]
- Listed vacancy rate: [X%]
- Annual property taxes: $[TAX]
- Insurance estimate: $[INSURANCE]
- Any known issues: [LIST KNOWN ISSUES]
Calculate:
1. Gross rent multiplier (GRM)
2. Price per unit and price per square foot
3. Back-of-envelope cap rate using 50% expense ratio
4. Monthly cash flow estimate using the 50% rule
5. Pass/fail on the 1% rule
Based on these quick metrics, is this worth deeper analysis? Flag any numbers that look unusual for the market.
Source: https://sureprompts.com/blog/ai-prompts-for-real-estate-investors