SMART Real Estate Investing System - Income Property Search Engine Instructions


Key Analysis Parameters:
. Filter:
- Area (City/County)
- Price (Min/Max)
- Minimum Cash Flow
- Maximum GRM
- # Units
- Minimum Long Term Net Equity Gain
- Minimum Long Term ROI
- Maximum Doubling Year
. Calculation:
- Down Payment Percent
- Property Management
- Investment Timeframe (e.g., 1-10 Years)

Sort: Click on any column heading; toggles between Ascending and Descending


Detail Calcs: Click on any Property Id to run detailed calculations and change any parameter for that individual listing


Filters: Click on "Run Filters" button
. Can select GT, GE, LT, LE, EQ, NE for any field
. Will display a subset of the available properties
. You can set up several filters at once
. Click "Reset Filters" button to undo all filters and display all properties

. Example:
- Click "Run Filters" button
- Select "Units" "EQ" "2" for duplexes
- Click "Submit"
- You will see only duplexes listed
- "Run Filters" again
- You will see all your currently selected filters
- Select another filter, for example "Cash Flow" "GE" "500" to see only those duplexes with at least $500 positive cash flow a month
- Click "Submit"
- The list narrows down to duplexes with at least $500 cash flow
- Continue or reset the filters to find the properties that meet your investment needs


"Recalculate" button: Re-runs all calculations
. Allows you to:
- Reset all calcs to "Standard" values, or
- Recalculate all values using "Current" values, or
- Entry and recalculation of "New" parameter values

- Calculation parameters you can change:
. Down Payment %
. Interest Rate
. Mortgage Years
. Property Tax Rate
. Insurance Rate (as a percentage of Asking)
. Reserves (monthly amount to add to calculations for future repairs, etc.)
. Property Management Fees
. Vacancy Rate (5% standard; equals 2 weeks in a year without a tenant
. Estimated Closing Costs (averages about 1.5% per transaction, excluding commission)
. Estimated Repairs (as a percent of Asking; upfront fixup costs)
. Opportunity Years (timeframe for investment calculations; defaults to 10 years)
. Estimated Rent/Expense Increase (expenses are going to go up every year; you can chose to raise rents, also; defaults to 3% annual increases on both)
. Appreciation (annual extimated appreciation rate; defaults to 3%)

. Example:
- Click "Recalculate" button
- Select "New", then enter a different Down Payment percent, to see what would happen
- Click "Submit"
- Re-displays all properties with new calculations (Filters and Sorts are reset to default)


Enter Total Investment Amount: Recalculates all property numbers using your Total Investment Amount
. Determines Effective Down Payment %
. Includes Closing Costs and Up Front Repairs

. Example:
- Click "Enter Total Investment Amount" button
- Enter the total amount you would like to invest, including Down Payment, Closing Costs and Up Front Repairs
- Click "Submit"
- The system calculates an Effective Down Payment Percentage based on the new Down Payment, CC & Repairs
- The system then recalculates Monthly Mortgage, Cash Flow, and Net Equity Gain and ROI over time button
*** Interesting effect:
+ Notice the number of Positive Cash Flow properties as a result of the new Total Investment Amount, compared to the default of 25% down


Display Parameters: Displays all "Standard" and "Current" calculation parameters in effect


Asterisk (*) next to Rents:
. Using Adjusted Rents (more reasonable for the area than on MLS)


Doubling Year:
. The year ROI > 100%
. "Doubling Year '--' means does not double within Opportunity Years timeframe
. *** Tip: 7/10 rule:
+ You can double your money in 7 years @ 10% annual compound interest
+ You can double your money in 10 years @ 7% annual compound interest
++ Anything better than 7 doubling years is more than 10% annual compound interest!!!



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