Friday, October 18, 2019

Calculating Investment Property’s Return on Investment


Here's an article with a good summary on 
By: Matt Frankel, CFP

I recommend using these methods when analyzing an investment property to determine the market value and projected returns of a property - Capitalization (CAP) rate is a great method to help determine the market value of a property compared to others in the market - unfortunately, most of the time when reviewing a property the seller's don't provide a complete picture of the financial overview of the property - it's important to make sure your including such expenses as potential vacancy, management fees, repairs, capital improvements, and reserve funds in addition to operating expenses

If you're considering investing in real estate or need help completing an analysis of a property let us know - we can help you walk through the steps to determine if the property fits and meets your real estate investment goals

Have a great weekend....Nick

Jed Park                           Nick J DeMarte, SEC
256-426-3777                  256-763-0867
jed@parkprops.com        nick@parkprops.com

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