Use Cap Rate and Gross Rent Multiplier to Get Rental Property Value
Saturday, September 12
Cap Rate (i.e., Capitalization Rate) and Gross Rent Multiplier (GRM) are popular real estate investing measures regularly used by real investors and agents to determine whether a rental property is priced according to the local market values and thereby might be a good real ...
What You Should Know To Sell Income Property
Tuesday, July 28
As a former Realtor who listed and sold rental income property almost exclusively for thirty years, I would like to pass along some nuances I learned about real estate investment property that hopefully will be helpful to the rest of you thinking about making the transition from residential to in...
How a Sinking Fund Covers Future Rental Property Expenditures
Tuesday, July 28
Sinking Fund is a factor by which uniform deposits must be contributed each period at a given rate of compound interest in order to have a specified sum available at some given future time period.In other words, rather than putting aside a single lump sum of cash into an account as reserve to cov...
The Internal Rate of Return (IRR)
Wednesday, January 21
The Internal Rate of Return (or IRR) is generally one of the more popular rates of return amongst real estate investors because it accounts for "time value of money".In other words, unlike many returns associated with real estate investing, IRR surrounds the principal assumption that a dollar in ...
Why Real Estate Investors Like The APOD
Wednesday, January 07
The APOD, an acronym for Annual Property Operating Data, is arguably one of the most popular real estate analysis reports used by real estate brokers, investors and others engaged in real estate investing.Considered by many as an equivalent to an income property's annual income...
How to Calculate the Cash-on-Cash Return
Tuesday, January 06
The Cash-on-Cash rate of return (or CoC) is a measurement of the ratio between the total amount of cash flow a rental income property generates in a particular year (usually before taxes), and the total investment a real estate investor initially makes to purchase the property.Cash-on-cash is not...