Homey: Powerful, Efficient Rental Property Analysis
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METHODOLOGY

Homey estimates the income, expenses and cash flow of a given property based on the following third party sources and key assumptions:

Property Description: listing information taken from publicly available data; property price set to Zillow Zestimate as a starting point. Sources: Zillow and other real estate platforms.

Mortgage Estimates: assumes property is purchased using a 30-year mortgage, with a 25% down payment at a 4.65% fixed
interest rate. Source: non-occupancy mortgage rate via Free and Clear.
 

Buyer and Seller Fees/Closing Costs: assumes Buyer fees equal to 2.1% of purchase price and Seller fees/closing costs
equal to 6.0% of purchase price. Source: Smart Asset; Bankrate.
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Monthly Rental: set to the Rent Zestimate as a starting point. Sources: Zillow.

Rental Expenses:
  • Vacancy Allowance: assumed to be equal to 5.0% of rent. Source: BiggerPockets.
  • Property Taxes: based on the county average effective property tax rate. Sources: SmartAsset.com.
  • Homeowners Insurance: based on value-adjusted state-wide average . Source: Insurance.com.
  • Property Mgmt: equal to 8% of rent. Source: BiggerPockets.
  • Repairs and Maintenance: equal to $1 per square foot. Source: Real Property Management.
  • Capitalized Expenditures (CapEx): equal to 5% of rent. Source: BiggerPockets.
  • Leasing Fees: equal to half month's rent every 2 years (2.5% of rent). Source: BiggerPockets.

Appreciation Rate: annual property appreciation is based on 1 year appreciation forecasts from Zillow. Source: Zillow.

​Rent Increase: rent is assumed to increase by 2.6% annually. Source: Apartment List. 

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Note: ​(i) Projections, estimates, analyses, forecasts or other real estate information presented by Homey are not intended to be a solicitation of real estate services or advice; any document presented is intended to be used for informational purposes. (ii) Differences between the estimated figures and actual results can have a significant impact on the financial performance of analyzed properties. (iii) Estimated financial performance is not indicative of actual results and is subject to economic, financial and real estate market conditions. (iv) Any information provided by Homey is intended to be used with other customary real estate due diligence processes; please review the Methodology and Definitions for more detail and source documentation of estimates.
​​© 2018 Homey LLC
  • Home
  • About
    • About Homey
    • Methodology
    • Definitions
    • Private Policy
    • Contact