Facebook
X
Pinterest
Copy Link
Do your rental spreadsheets look like this:
If so, then here is your solution:
One of the complaints I hear most often from the buy and hold property investors I cover is how their use of spreadsheets limits their analysis of a portfolio. Often only limited to one property per excel sheet, these investors have no way to carefully assess a portfolio on a macro basis.
Meaning while they can assess each individual property in a portfolio, it’s sometimes difficult to assess what the entire shebang is doing on a macro basis. And even worse, it’s usually very hard to understand what redeploying long held equity from a portfolio will do to current and future metrics.
What I’ve been using to analyze portfolios and alleviate these limitations of spreadsheets is a software solution called Property Llama.
Its pros are many:
-PL aggregates a wide range of data related to rental properties including price, rent rolls, trends, and neighborhood stats, all on one or two dynamic pages that are easy to edit and easy to understand.
-the portfolio analysis embedded in the software is specifically designed for rental property owners to highlight the data that measures metrics of rentals. ROE, cashflow, cap rates, and expense ratios are available at a glance and allow the user to analyze a portfolio wholistically at a glance, instead of comparing a bunch of spreadsheets and pulling data from different sources.
-the visual tools are very helpful to me; pie charts, graphs, and easy to read graphics make it very easy to assess what is happening right now in the portfolio, and allows one to easier make decisions when looking at pro formas. I find that there is no comparison to spreadsheets.
-by running various scenarios within and outside a portfolio, it’s often very easy to identify and assess which specific properties are ripe for 1031, or cash-out refinances, and where efficiencies lie.
For example, using Property Llama, it’s possible to see an entire portfolio’s cap rate, ROE, and cashflow at a moment in time. Taking this data, it’s possible to make an assumption on what that portfolio would then return if we made assumptions such as these:
Took a cash out refinance on a rental valued at $800,000, leaving it with 35% equity, and used that refi money at 7.25% to purchase a 7.82% cap rate by putting 40% down on the new property. Doing these calculations on spreadsheets and making assumptions would be a nightmare. Pl would be able to show you a before and after ROE, CF, and Equity percentage in seconds on this hypothetical.
I understand the above example may sound convoluted, but if you take it for a test ride here:
https://share.propertyllama.com/Yjfa
I think you’ll see the value in the software.
Currently I am providing PL free to all my database, you just need to email me and let me know that you want a subscription.
