Learn how to leverage Privy’s Long-Term Rental Data and built-in rental calculator to evaluate properties for cash flow potential. Whether you’re building a portfolio, wholesaling to landlords, or structuring creative deals, this guide shows you how to assess rental comps, adjust assumptions, and use key metrics like cap rate and cash-on-cash return to make informed investment decisions.
Step-by-Step Guide to Using Long-Term Rental Data in Privy
Step 1: Review Rental Data on a Property Card
Open the property card LiveCMA™ for a property you’re interested in.
Scroll down to the Comparables section and locate the Rental Comps (purple indicators).
Click on a rental comp to view detailed information about nearby rental properties, including:
Number of bedrooms and bathrooms
Property condition
Monthly rental rates
Step 2: Analyze Rental Comps
Compare the property’s details to similar rentals in the area.
Pay attention to condition, size, and amenities to ensure accurate comparisons.
Use Privy’s rental data, sourced directly from property management companies, to eliminate guesswork and increase accuracy.
Step 3: Adjust Assumptions with the Rental Calculator
Click the Edit button in the Rental Calculator section to adjust assumptions:
Monthly Rent: Update rental income based on accurate comps.
Down Payment: Modify the percentage to reflect your financing plans.
Property Taxes & Insurance: Input custom values for more precise calculations.
Management Fees: Remove or adjust based on whether you’ll self-manage the property.
Watch as key metrics like cash flow and annualized return update in real-time.
Step 4: Filter for Long-Term Rentals
Use Privy’s Filters to narrow your search based on rental-specific criteria:
Cap Rate: Target properties with a specific cap rate for better returns.
Cash-on-Cash Return: Identify deals that meet your cash flow goals.
Price Range: Set a maximum budget to align with your financing.
Bedrooms & Bathrooms: Ensure properties meet rental demand.
Step 5: Exclude Outliers
Remove rental comps that are outliers (e.g., extremely high or low rent amounts) to refine your analysis.
Click on the comp and use the Hide button to exclude it.
Why Use Privy’s Long-Term Rental Tools?
Accurate Rental Data: Privy’s comps come directly from property management companies, ensuring reliability over third-party sources like Zillow.
Built-In Calculator: Automatically populate rental calculators with accurate data to save time and reduce errors.
Customizable Analysis: Adjust metrics like rent, financing, and expenses for tailored results.
Powerful Filters: Find rental properties using cap rate, cash-on-cash return, and gross yield metrics.
Streamlined Workflow: Save and revisit your analyses or share them with clients and buyers.