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Category Archives for Deal Analysis
The Break Even Ratio and When to Use It
There are a lot of ratios to look at when investing in real estate, and it can get confusing. One of the lesser used but still important ratios is the break-even ratio.The Break Even Ratio answers the
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Pro Forma vs Actual Rents and Expenses
I'm sure you've seen it, especially in this hot market - current rents are at $800 per month but the listing agent is advertising it as potentially have a monthly rent of $1,300...once all the upgrades
Continue readingHow to Analyze a Three Family Rental Property
There are multiple steps to analyzing a rental property, and you need to know 4 essential pieces of information. Get The Calculator Step 1: Apply FiltersThe first thing you do is filter out the stuff
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Risk Adjusted Returns In Real Estate – Is It Really Worth It?
Have you ever heard someone say “I won’t take less than a 12% return” or something like it? Of course, you have, because it’s pretty standard practice in real estate to do that. If
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You’re Probably Calculating Vacancy Wrong
You’ve rented an apartment out for an entire year and now the tenant is moving out. They leave, and it sits empty for two weeks before another tenant moves in. So, you have roughly 4% vacancy, right?
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The 1% and 2% Rules to Real Estate Rent Demystified
It could very well take weeks or months to analyze every deal – by the time you get through the list most of the listings have been sold. That’s why there are screening tools like the 2% r...
Continue readingCash on Cash Return (simplified)
If you’ve spent more than 4.7 seconds reading about real estate investing, you’ve heard the term “cash on cash return” tossed around like chicken nugget. It’s really important
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What is a Good Cap Rate?
Recently, I’ve been hearing people toss out some strange phrases like: “I don’t buy anything unless it’s 12 cap or higher.” or “5 cap is too low, there is no value.” But,
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1-Year Update on My 5-Family Deal
Wow, has it already been a year? It’s crazy to think about that, and the fact I haven’t done a single update about this deal yet! It might be a long post, so bear with me. I have a year of
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Debt Service Coverage Ratio: What is it and Why it’s Important
One of the first things any commercial lender or broker talks about is the debt service coverage ratio. Sometimes real estate pros don’t realize that they are throwing around numbers and terms that
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