return on equity

REI Monitor

The Austin Market expects technology

Data Tracking & Evaluation for Austin Area Real Estate Investments

We’ve been managing properties in Austin, Texas, since 2007. Over this time, we’ve seen just about everything. While maintenance, good and bad tenants, legislation, and even a pandemic have happened, investing in single-family residential properties has never been so attractive. These properties provide a substantial hedge against inflation, enabling the use of leverage through mortgages and increasing returns and tax advantages for rental property owners.

You should have stated goals, timelines, and expectations to be a successful investor in all arenas. With these parameters in place, we have a benchmark to measure the financial performance for the life of your investment. We also create and deploy Key Performance Indicators to track your real estate investment data and our progress toward success.

Unfortunately, we rarely see investors enter into single-family residential investing with any of these in writing or the reports necessary to monitor their investments.

That’s where REI Monitor comes in.

Evaluate Key Performance Metrics

What Is REI Monitor?

REI Monitor is an integrated solution that collects your rental property data and provides you with the ability to evaluate your key performance indicators and track the success of your investment.

It provides the actual Return on Equity of your investment in real time. You can monitor vacancy, maintenance expenses and delinquent income. You can even create projections and set new goals by manually inputting and changing the data.

What specific data does the tool collect, track, and evaluate?

Data Collected

Monthly Rental Income

  • Your monthly rental income is strategically determined by your property management team and collected via your owner portal.

Monthly Maintenance Expenses

  • Determined by repairs made to your property in every given month (collected via your owner portal).

Equity

  • Equity is calculated from entries in your Portfolio Purchase History (collected via your owner portal).

Vacancy Percentage

  • Calculated using your leases over the last 12 months (collected via your owner portal).

Debt Servicing

  • Your principal and interest payments made on the property.

Property Expenses

  • Ex: Leasing fees, property management fees, taxes, etc.

Data Tracked

Maintenance Expenses

  • The percentage of your monthly income that is spent on property maintenance based on expectations derived from the age of the property.

Delinquent Income

  • The delinquent income on any of your current (active) rental property listings.

Vacancy Trends

  • Equity is calculated from entries in your Portfolio Purchase History (collected via your owner portal).

Vacancy Percentage

  • Your property’s annual vacancy percentage eventually compares this to the regional or national average.

Data Evaluated

Your Rental Property’s Return on Equity Percentage

  • ((Appreciation + Principal Paydown + Cash Flow) / Total Equity) x 100
  • The performance of your investment property based on ALL your numbers

Rental Property Tracking

Why Is The Tool Important To You And The Success Of Your Real Estate Investment?

Because 87% or more of single family residential investors have only 1-3 properties and thus do not invest as a profession.

Because single family residential investors currently have almost no tools available to evaluate and track their investments.

Because solutions must be able to show numbers of varying periods of time so that investors can analyze by month, as well as trends and productivity over time.

Additionally, This Tool Will

  • Provide forecasting to enable better purchasing decisions.
  • Provide modeling to enable better risk vs. leverage decisions.
  • Allows recognition of the fact that individual formulas, like the use of CAP rates, don’t tell the entire story.
  • Uses your property data to provide ROE (return on equity) insights and trends related to maintenance expenses, vacancy and outstanding balances.
  • Allows you to make investment decisions based on logic and data, not emotion.
  • Allows you to focus on the big picture: Your financial goals and timelines.

Frequently Asked Questions

You must partner with a participating professional property manager in order to get all the benefits of the solution. Once you onboard with your property manager, they will automatically integrate your property data to populate into your new investment health dashboard.
Once you sign our client agreement, we begin the process of onboarding you and your property into our state-of-the-art property management software. We will collect all of the necessary data about the purchase and management of your property. The data is then automatically integrated into the REI Monitor, which delivers your health dashboard. But you may also manually update the data in the REI Monitor tool dashboard once you’ve received access.

The REI Monitor tool is available to you 24/7, year-round and provides real-time data so that you may access the information via your dashboard any time you’d like. You may also schedule a time to discuss any aspect of your performance data with your dedicated property management team.