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Updated over 9 years ago on . Most recent reply
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Determine Time Value of Investments
How do you analyze and factor in the time value of an investment. We analyze the CoC, ROI, IRR, etc.(the financials) of our investments but how about your time involvement (intangibles?)?
We throw around the saying "work on your business, not in your business", well how do you factor in how much your time is worth to analyze a property. This applies to flipping and buy and hold. Time value has to be analyzed in some way no matter what your investment strategy is. Some have more time and some less but how do you factor that in to your analysis to determine how much time it will take and if it is worth your time?
P.S. I posted a similar thread but realized I didn't title it or ask the question correctly!
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@Jedd Braunwarth For me I am currently buying single family rentals. They are in nicer middle class neighborhoods. I am doing this because I don't have time to deal with issues and trouble tenants. I am buying newer houses with less maintenance issues. I am attracting stable families vs. young adults with roommates. I live 1,900 miles away from my investments so that is key for me. If I have an issue I can call a handyman and have the tenant let them in. I will be moving back to the area I invest in about two years. At that point I will begin buying multi family. Its not ideal for the time I have right now. When I buy a property I try to have all of the repairs taken care of by closing. I advertise the property before closing. Then I get a lease signed when I fly in for closing. I have my realtor do all of the showings of the property to the prospective tenants. Its working well so far. We will see what the future holds.