Market Your Income Property

You should expect to see some investment properties listed for sale by a residential real estate agent. Mostly duplexes or triplexes, but occasionally residential real estate agents also sell larger apartment complexes.You might call it professional pride, even intolerance.

Residential agents typically do not include essential income and expense data about the property. This is frustrating because it necessitates a call to that agent, which easily could be avoided if the agent merely took a few minutes to present the income property properly.

Price
Number of Units
Unit Mix - Are the units two bedroom one bath, three bedroom two bath, and so on.
Gross Scheduled Income - The potential annual income if all units were occupied and collecting realistic rents.
Operating Expenses - The dollar amount spent annually to keep the property running. Property tax, liability insurance, utilities, trash collection, maintenance and repairs, and so on. Depending on the number of units, this should be somewhere between 25-50% of the gross operating income. With duplexes, for instance, tenants usually pay for trash collection, and utilities normally associated with laundry facilities in larger complexes, or landscaping costs do not exist.
Rent Per Unit - Show the current rent for each unit. In cases of larger apartment complexes, show a rent-range by unit configuration.
Capitalization Rate This is optional in the MLS listing, but it can help generate interest. Simply divide the property's net operating income by the asking price.

Moreover, prepare a marketing package you can send to those inquiring about your income property listing. Whereas, the MLS is meant to broadcast the listing and peak interest in the property, the marketing package fills in the blanks. In addition to the obvious like price and address, a marketing should also include

An Income and Expense Statement
Property Description
Property Features
Current Loan Information
Proposed Loan Information - Show the annual debt service and cash flow before tax
Rates of Return such as capitalization rate, gross rent multiplier, cash on cash return.
The more eloquent the better, so you might also consider adding calculations for price per unit, pricsquare foot, expense ratio, break-even ratio, and debt coverage ratio.
Property Picture

Remember, your goal is to sell your income property listing. Why not present it in a way that would appease investment property specialists, perhaps get them interested, and at the same time make you look more professional. Plus, it's a great way to show your seller how proactive you are about rental property marketing.