If you’re not a data-driven investor, you’re missing out.
Data is the key to making informed investment decisions, and without it, you’re essentially flying blind.
There’s a wealth of data out there that can help you make better investment decisions, and if you’re not taking advantage of it, you’re at a disadvantage. If you want to be a successful investor, you need to be driven by data.
As a fractional real estate investor, it’s important to keep an eye on certain data points to ensure positive portfolio performance.
Here are six datasets all fractional real estate investors should track:
Market Trends
Knowing whether the market is trending up, down, or sideways will help you make informed decisions about when to buy, sell or hold properties. You can access market trend data from a variety of sources, including the National Association of Realtors, Zillow, and other online real estate portals.
Home Sales Data
This data includes information on home prices, number of homes sold and days on market. This information can help determine whether now is a good time to buy or sell investment properties. Home sales data is available from the National Association of Realtors, local real estate boards, and multiple listing services.
Rental Income
This is perhaps the most important data point for fractional investors to track. After all, rental income is what’s going to help you cover the mortgage, taxes, and other expenses associated with owning a property. Make sure to keep tabs on your monthly rental income and compare it to your monthly expenses. If your rental income isn’t covering your expenses, then you may need to consider raising rents or finding a more efficient way to run your operation.
Occupancy Rate
Another important data point for fractional investors to track is their occupancy rate. This will give you an idea of how well your property is performing in the rental market and whether or not you need to make any adjustments. If your occupancy rate is below average, then you may need to consider ways to make your property more attractive to renters.
Repair and Maintenance Costs
Repair and maintenance costs can eat into your profits if you’re not careful. That’s why it’s important to track these costs so that you can budget accordingly. If you find that your repair and maintenance costs are starting to eat into your profits, then you may need to consider increasing rents or finding a way to reduce these costs.
Property Value
Finally, it’s important to keep an eye on your property’s value over time. This will give you an idea of how well your investment is performing and whether or not you should sell. If your property’s value has increased significantly, then you may want to consider selling and reinvesting the profits into another property.
As a fractional real estate investor, it’s important to keep an eye on certain data points to ensure positive portfolio performance. By monitoring market trends, home sales data, rental income, occupancy rates, repair and maintenance costs, and property values, you can make informed decisions about when to buy, sell or hold properties. This will help you maximize profits and minimize losses. Of course, with any investment there are risks so make sure to do your own independent research first.
Making decisions based off of data is proven to be more successful than shooting from the hip. By paying attention to these six metrics, you will set your portfolio up for success. And remember, always let the data guide your investment choices.