Towny Mustin Explains How to Evaluate a Potential Rental Property

Rental properties offer several benefits to real estate investors who know and understand to evaluate potential properties. A celebrated name in the real estate industry of Utah, Robert Townsend “Towny” Mustin believes it is important to set your goals and define your expectations before you make an investment. 

TownyMustin has more than thirty years of experience as a real estate agent. Before he views any potential rental properties, he determines whether those prospective investments will get him where he wants. He has ways to evaluate the potential rental property to see whether it will offer the returns needed on the investment. 

Before going into the discussion, an investor must ask the basic question of why you should invest in real estate. To this, Mustin has a powerful and straight answer. He said that ninety percent of all millionaires are made through owning real estate. Though he doesn’t promise that you will become a millionaire through real estate, but he can’t promise that you will not become one either. Owning rental properties and real estate helps you build wealth through cash flow, appreciation, and tax savings. 

Consistent income leads to cash flow, whereas equity in an asset is your ownership. Therefore, you need to make rental property analysis quickly by calculating income and equity that will help in the determination if a real estate investment offers a positive rate of return. Once your real estate goals are determined, you can then know whether the rental property available on the market is the right investment you have made. 

When determining the income on your rental property, you need to know the actual difference between cash flow and income.

Cash flows mean the amount of money that comes into your account, whereas income (bet income) signifies the amount of money you are left with after paying the expenses such as taxes, insurance, maintenance, and loan payments. You can use the following to determine your potential net income from your investment:

• GRM (Gross Rent Multiplier)
• Net Income after Financing
• The 50% Rule
• The 1% Rule
• Cash-on-Cash Return
• Cap Rate

Presently a member of the Realtor’s Board Utah within the Division of Real Estate for the State of, Towny Musitn has the immense experience to invest in properties in Utah. Also a winner of the Gold Standard Award from the Utah Association of Real Estate Brokers, Mustin has earned his reputation and achieved success with his knowledge and smart tactics in real estate.