PFwise.com Monthly Newsletter
Help you make wise personal finance decisions
Hello friends, welcome to the July 2015 PFwise.com Monthly Newsletter! In this issue, we will show you 3 ways to evaluate a rental property's potential return.
1. Calculate the Cap Rate
The Cap Rate is a simple and common measurement in real estate investment. This blog post gives you a Cap Rate 101, it takes you through the basics, then illustrates the concept with 4 examples, and points out some common pitfalls to avoid when calculating cap rates.
2. A Quasi-quantitative Model
This quasi-quantitative model gives you a quick-and-dirty way to estimate a rental property's potential return. It looks at a rental property from both positive and negative sides and gives you a good picture whether you have a good deal or not.
3. A Truly Quantitative Rental Property Evaluation Model
What's introduced here is a truly quantitative real estate investment evaluation model that every real estate investor should check out before buying a rental property. It considers all of the factors that could impact your rental property's returns and in the end gives you two most important metrics for your investment! Regardless if you already own a rental property or are considering purchasing one, you need to check it out!
Thank you for your readership! I hope this newsletter helps you become a better real estate investor and I wish you great success in your real estate investment!
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