Investment Property CMA: What Investors Need from Your Analysis
Real estate investors do not care about granite countertops or open floor plans—at least not the way homeowners do. They care about numbers: cash flow, cap rates, cash-on-cash return, and appreciation potential. If you want to work with investors, your CMA needs to speak their language.
How Investors Evaluate Properties
While traditional buyers ask "Can I see myself living here?", investors ask "What is the return on my capital?" Your CMA for an investment property should answer that question with data.
Key Metrics Investors Want
- Gross Rent Multiplier (GRM): Purchase price divided by annual gross rent
- Cap Rate: Net Operating Income divided by purchase price
- Cash-on-Cash Return: Annual cash flow divided by total cash invested
- Rent-to-Price Ratio: Monthly rent as a percentage of purchase price (1% rule)
- Appreciation Potential: Historical and projected price trends for the area
Including Rental Comps
A standard CMA shows sold comparables. An investor CMA should also include rental comparables. What are similar properties renting for in the area? This data drives the cash flow analysis that investors use to make decisions.
CMAForge includes rental market data alongside sales data, so you can show investors both sides of the equation: what they will pay and what they can earn.
Expense Estimates
Investors need to understand expenses beyond the mortgage. Include estimates for:
- Property taxes (actual or estimated)
- Insurance costs
- Property management (typically 8-10% of rent)
- Vacancy allowance (5-10% of annual rent)
- Maintenance reserves (5-10% of rent)
- HOA fees if applicable
Cash Flow Analysis
Show investors the bottom line. Take gross rental income, subtract all expenses and debt service, and show the monthly and annual cash flow. Positive cash flow properties are what most investors seek, especially in today's higher interest rate environment.
Market Health for Landlords
Beyond the property itself, investors want to know about the rental market. Is it landlord-friendly or tenant-friendly? What are vacancy rates? Is the population growing or shrinking? Include market trend data that helps investors understand the broader context.
Value-Add Opportunities
Many investors seek properties where they can force appreciation through improvements. Your CMA should note opportunities like outdated kitchens that could command higher rents after renovation, or underutilized space that could be converted to additional units.
Exit Strategy Analysis
Smart investors think about their exit before they buy. Include data on market appreciation trends and how long similar properties take to sell. This helps investors understand liquidity and potential returns when they decide to exit.
Building Your Investor Practice
Investors who trust your analysis become repeat clients. They buy multiple properties and refer other investors. Creating investor-focused CMAs positions you as an agent who understands their world—not just another residential agent trying to break into the investor market.
Create Investor-Ready CMAs