New Tool Aims to Determine How Valuable a Foreclosure Will Be as a Rental

by Shilpi Paul

New Tool Aims to Determine How Valuable a Foreclosure Will Be as a Rental: Figure 1

A new tool has been released that will help those looking to buy foreclosed properties and turn them into rentals accurately determine their profit potential.

Analytics firm CoreLogic just unveiled a REO-to-Rental data tool that helps investors gauge the rental value of real-estate owned (REO) homes. The tool is primarily for those participating in the new government-sponsored enterprise (GSE)/Federal Housing Finance Agency (FHFA) REO-to-Rental program.

The tool provides the average potential rent based on MLS rental data, the current value of the property based on CoreLogic models, a 24-month review of housing price trends and an assessment of the neighborhood and market where the property is located.

From the CoreLogic press release:

The analysis is delivered within 24 hours of bid tape receipt. CoreLogic will report average rental pricing based on completed rental agreements sourced directly from local MLSs, where available. This will provide more accurate and timely data than listings typically “scraped” from Internet sites.

As we’ve reported, the government has been considering how to sell REO properties to investors who could then rent them out; this new tool will help those investors better visualize the outcome.

See other articles related to: reo properties, renting out foreclosures, corelogic

This article originally published at http://dc.urbanturf.com/articles/blog/new_tool_to_determine_rental_value/5507

1 Comment

  1. landsonfeet said at 8:27 pm on Tuesday May 8, 2012:
    I have to wonder if this new tool takes into account legal factors that could make a rental more expensive, such as getting zoning clearance for a rental and gaining a certificate of occupancy. These can be significant hurdles that can make it not worth converting a property to a rental use.

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