Tutorial

You are about to start a search to look for properties. You have many different search options. You can search by street, zip code, city, and county, MLS, MLS ID, Metropolitan area and state.

Let’s start with choosing zip code from the pick list. Type in the zip code in the next space over and begin your search. You have additional options that will assist you in narrowing your search.

You can choose to use other options. Click on the box marked TYPE. You can then use the pick list to have single family detached (a single family home) or single family attached (such as a condominium or duplex) or any which will have all properties available in the MLS.

You now can choose price range. Click the box marked PRICE. You now can edit the price range you would like to search in. If you don’t pick this box then it will search for all properties in the price range from $0 to $10,000,000.

Now you can choose criteria which allow you to pick all the cash flow properties or price reduction properties. If you don’t choose this option all properties will come up on your search.

You have the ability on this site to have saved searches.

Start NEW SEARCH, name your search and decide what options and criteria you would like in your search. Once you put the search criteria in the saved search you will see the status of the search. Once it’s 100% complete you can view the results.

This will then bring you to the properties page showing you all the listings which meet your criteria. This search will be saved until you delete it. As new properties meet your saved criteria you will get an email notification about the new properties and links to view them. This search locates new properties every 24 hours.

You are allowed up to 5 saved searches at a time. When you are done with one you can delete it and add another.

Now you are in the property list from your search. This gives all the active MLS listing from your criteria.

You will notice that the page has several columns. Listing time, MLS, Address, City, Type, Price, Beds, Baths, Cash flow and Pictures. These are your headings that show you the different details about a property. All of these tabs have up and down arrows that change the way the list is populated on the search. For example is you click on Bed or Bath arrows you will have the list change according to those specifications.

Comparing more than one property: Check the box next to the property you would like a report on and choose another or several properties. You will get a report that compares these properties together. This report is printable.

We are now going to view a property. Click on the property address and this will bring you to the Property Report. The property report has many tabs and we will examine each one.

We will use a real property as an example and walk through the report. The property we are using is 4157 Vista Grande, San Diego, California 92115.

At any time while viewing the report you have the options to save or print it.

Once you save you get the option of adding any notes you would like to make about the property.

To make notes click on ADD NOTES. The NOTES Tab will be created right after the County Tab.

Once completed with your notes, click on SAVE NOTES. These will now be saved when you save the property and be found under your favorites on the Find Investment Property page.

Click on VIEW FAVORITES and you will see your property that has been saved. Any properties that you have saved will be on this list as well.

You can save favorite properties as you search to make sure you don't lose them. On the list of properties after your search criteria is named you have the option to check different properties and add them to the list of FAVORITES.

At the end of the page you have a pick list of MORE OPTIONS. Click on SAVE TO MY FAVORITES.

The first page that comes up is the MLS listing page. This is the page an agent would show you about the details of a property that has been listed. You can see the immediate details of the property from this page.

We will start at the top of the page under Property Details. You see Type, Bed, Bath, Units, Bldgs and Stories, Parking, Year Built, Zoning, Lot Sq ft (acres), and Bldg Sq ft.

On this property we see that the Type is a SFD which means Single Family Detached Home. The Lot Sq ft and the Bldg Sq ft are the property's square footage. The lot is the land the property is on and the Bldg is the building or house not including the garage.

The section Comments is for any comments the listing agent has stated about the property, its location, and any specifics about it that would seem interesting to a potential buyer. Sometimes there are no comments listed so we see here.

The column Listing Information shows that the property is listed under SANDICOR which is the MLS for San Diego.

The listing conditions show what kind of listing it is what the status of the property is, and what kind of sale it is. This property is active and is a short sale.

The Pictures column allows you to click each picture to blow it up and see what the property looks like.

The last column on this page is History. This section gives you any history of the listing on the property, price reductions, increases, changing of listing etc.

Now we are going to the next page to get more details about the property.

Click on the County tab.

The first column we have is Property Details. Under this section we see Use Code (Standard)- what the property is being used for Use Code (Municipal), Zoning, Year Built, Remodeled, Lot Sq ft (acres), Bldg Sq ft, Bed, Bath, Total Rooms, Stories, Units, and Parking.

We see the Use Code is RSFR (which means Single Family Residence), the Zoning is R1 (which means this property is zoned for residential).

This shows the same date for remodeled (which indicates per the county records there has not been any remodeling on this property) It is 1 unit, (meaning one building that has one address compared to multiple family housing which houses 2 families or more.) and has a 1 car garage (G1).

The next section is Tax Assessment.

We see the tax information on this property in this section. Assessed Value is broken into Land value and Improvements value (buildings).

Assessed value is the current value of the property for taxation purposes. Every time the property is transferred in an arms-length transaction the assessed value is changed. An arms length transaction is when money and property is exchanged between two non-related parties; not just title like when it is passed between husband and wife, or yourself to your trust for example.

The county page will show you the breakdown of the assessed value for the land and for the improvements of the property. The last tax bill is also shown, the year that it was last assessed was in 2007 and the tax rate % is 1.173. This helps you calculate future tax bills for the property.

The Last Transaction section shows when the last sale on the property occurred and under what terms, by who, for how much, and if its owner occupied. At times the property will say non-owner occupied it means the property tax bill is being sent somewhere other than the property address and no one is claiming the Homeowners Exemption.

The Legal Description indicates how the county traces that property in that area.

The Financing Section shows you the current loans on the property and how much is still owed on the mortgage. Many properties will have more than one loan. You also can see the estimated rate on the loan. This is an estimate based off the average loan percentage at the time the loan was given. The APR at the time is used to average out the estimate. This is good for you to know so you can see what the seller still owes on the property and how much room is in their potential profit.

The Underwriting AVM indicates what the bank underwriter considers the value on the property. This is based on other loans on properties in the area and not on an appraisal.

Now lets look at the next page of information about the property. Click on Campareables tab.

This tab shows you the recently sold properties and properties currently on the market that are a comparable to the property you are Krunching.

The map of the area shows blue thumb tacks which are recently sold properties, green thumb tacks which are properties currently for sale and one red thumb tack which is your property under analysis. If you click on any of the thumb tacks you will get immediate specifications about that property including price and bedrooms and bathrooms. If you click on the address of the thumbtack comparable you will be brought to the Property Report for that property.

The map also shows an outline of an area in red shading. This area is the census tract that the property belongs to. The census tract identified economically and demographically related properties and usually follows natural or man-made boundaries such as a canyon or a freeway.

Under the map you will see the top 5 properties that compare with the one under analysis. You have the option of seeing all active properties that are for sale by clicking on the “Show all actives” icon underneath the list.

You have the same list with the recently sold properties and have the option as well to view all that were found. We list out the top 5 in view.

You also now have the option to compare any of the comps together. Any of the comps that have a check box marked will show up side-by-side when you click the Compare Properties icon underneath the list.

The last section of this page shows you the Rental Comparables in the area, giving the low, medium, and high rents for that area. The rental estimate is made for the shaded region on the map (the census tract). It also shows the number of properties that were included in determining the rent values. A high number of properties indicates confidence in the rental values. A low number of comparables, such as 20, means little information about rents was available for the census tract and the values are less reliable. To see a map of comparable rentals that were used to generate the rental estimates, click the Comparables Report link.

This section also includes FMR information (Section 8 housing details). We give you the average that is paid on this type of property in this area. Each metropolitan area's FMR is different. You need to check out the rules and regulations that apply in the property's area you are looking at to see what are the FMR rules are.

The next page on the report is Investment Summary. This will provide the financial analysis for the property.

The Investment Summary page will give you the calculations on the property that you are analyzing. The investment Summary Spreadsheet has a 5 year projection of the sale value (sales price), rents, cash flow before taxes, and capitalization rate.

The investment parameters will change these figures depending on what changes you make in the different sections below.

You can change the parameters of each Value by changing the Source, click on the pick list and decide what parameter you want to use. All of these parameters are able to be customized or use the settings that you already saved.

The graphs here are the history of (OFHEO) The Office of Federal Housing Enterprise Oversight and the HUD Fair Market Rents for the CBSA (Core Based Statistical Area) for the last 7 years. These graphs give you and understanding of the market and is what we base our future projections on the Investment Summary's future calculations.

The next page on the report is the Investment Detail Page. This will show you in details the profit loss margin on the property along with your ROI potentials.

Lets break this page down for you. The first section is your NOI. This will show you your operating costs on the property. We have calculated the fees by taking your summary settings and deducting them from the rents received for the year.

The next section is Cash Flow on the property. This is the NOI after the above deductions and then subtracting the Debt Service. The Debt service is your monthly mortgage payment. This then leaves the Cash Flow Before Taxes.

These details let you see how much the property is costing you each year and when you actually get a positive return on investment (ROI).

Now we are looking at the hypothetical proceeds made on the resale of this property. The cost of the sale is the closing costs which is the % you have set under your operating costs. Here we have the sale of your property deducting the closing costs, the outstanding loans, and adding the principle paid on the life of the loan. This gives you your before Tax Sale Proceeds.

The next section goes over the Basis (original purchase price) then the cumulative depreciation is added which is the depreciation you've taken over the course of holding the property. This gives you the Adjusted Basis on the property for tax purposes.

We now have taken the Sales Price and Adjusted Basis and this calculation shows you the final taxable gain or loss on the property. As you can see this calculates with the 5 year projections all the way through the summary and details pages.

The next on this report is Market Conditions. These graphs show the trends for the area of the property and the zip code of the property. The solid black line is for the zip code and the solid orange line is for the city the property is in.

The first Graph (Median Price) shows the median price for the area that property is in and for the zip code.

The second graph (Median Inventory) shows the average number of listings in the MLS.

The third graph (Average Days on Market) shows the properties average number of days for that area and zip code.

The 4th graph (Median Market Action Index) shows the balance between supply and demand using a statistical function of the current rate of sale versus current inventory.

An MAI value greater than 30 typically indicates a “Seller's Market” (a.k.a. “Hot Market”) because demand is high enough to quickly sell all available 100 27360 0 27360 0 0 301k 0 --:--:-- --:--:-- --:--:-- 1719k supply. A hot market will typically cause prices to rise. MAI values below 30 indicate a “Buyer's Market” (a.k.a. “Cold Market”) where the inventory of already-listed homes is sufficient to last several months at the current rate of sales.

The last page on the property report is Area Statistics

This page shows you the different area information, types of housing and occupancy percentage in the area.

Area Information

Gives the different codes that are used to locate the property in the county records.

Census Tract Code: The code used in the identification of labeling the census tract for that area.

FIPS Place Code: The abbreviation given to the state as a way of identification of that state. I.e. California: CA. CA is the FIPS Place code. There is a number attributed to each state that completes the identification process on the state.

FIPS County Code: The FIPS county code is a five-digit Federal Information Processing Standard (FIPS) which uniquely identifies counties in the United States.

This section also has the zip code and city information.

Property Types the report shows you the type of property it is, the number that are in the tract, and the number of them in the zip code.

RAPT: Residential Apartment RCON: Residential Condominium RSFR: Residential Single Family Home RDUP: Residential Duplex RTRI: Residential Triplex (3 family unit home) RQUA: Residential Fourplex (4 family unit home) Other: Commercial properites

The Occupancy % section shows how many houses are owner occupied.

This is calculated by the % of people don't have their mail delivered to that address. This indicates the property is being rented out or that the owner doesn't live there.

The Vacancy section shows what % of vacancies are in that area. This is calculated by the % of people not picking up their mail after 30 days and the post office is unable to deliver to that address anymore.

This detailed report can be saved or printed for your use.

If you have an address that you already know and want to Krunch that property you can enter it through the Krunch It! Section on the home menu.

Enter the address and zip code of the property. If there is a unit number be sure to add that to the street address. You will get a full detailed report just as above with the address that you entered.