Every turnkey operator will show you a projected rent figure. Far fewer show you what's left after taxes, insurance, and management: the income that actually lands in your account. When you evaluate any pro forma, ours included, start there.
Three questions expose the quality of any pro forma. First: are property taxes shown at the investor (non-homestead) rate rather than the owner-occupant rate? In Detroit these differ substantially. Second: is management priced in at a realistic rate? Third: does the rent figure match actual comparable leases rather than aspirational listings?
At 1st Class Invest we walk you through the whole equation on every listing: the real tax bill, a real insurance quote, and our actual management fee. Ask about any line item and its source comes with it.
If a pro forma looks too clean, look for the line items that are missing. The honest version always has more rows.
Want the numbers behind a specific property? We’ll walk you through them line by line.
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