Where is Your Rental Property Investment Calculator?
What are you using for your rental property evaluations?
It is well known that numbers play a huge role in determining if a deal is a deal or not.
Those factors come down to the numbers.
Unless you are Rain Man and can run all the necessary numbers in your head, you need a reliable tool to evaluate potential deals.
Being that most real estate investors are using the buy and hold strategy within their investment portfolio, we would like to introduce a tool that will quickly support your evaluation needs.
How it Works
A rental property calculator is a very important aspect of evaluating deals.
Quite often we are either evaluating a deal based upon it’s comparable value or it’s income value.
The two are different valuations techniques. But, the baseline of which you’ll use should align with the property type.
- If the property is a residential property of 4 units or less, you’ll use comparable values.
- If the property is a commercial property of 5 units or more, you’ll use the property’s income value.
- Regardless of either, seeing if the property cash flows is vital.
Within either evaluation, asset class is a integral portion of the evaluation as well. Asset class relates to CAP rate, and CAP rate equates to property valuation trends.
- To get a comprehensive look at evaluation techniques, see our articles 5 Ways to Evaluate Rental Property and Understanding CAP Rates.
Actual income, potential income, asset class, and CAP rate trends can help you understand the income potential of the asset. However, operating expenses, loan choice and entrance/exit strategy play a significant role as well.
This is where the tool you use, must be adequate in collecting all datapoints.
Whether you are looking to target a certain gross rent multiple (GRM), a target cash flow per door, a specific cash-on-cash return, or a target cap rate, the Cash Flow Analysis Calculator provides a full scope analysis.
You also won’t miss a potential expense, by collecting all expenses that could be accounted for in the Operating Expenses column.
- Save when you shop both in our Rental Property Package 1 receiving a 10% discount on both the Rental Property Investment Calculator and the Capital Expense Investment Calculator.
We all know every property’s capital expense plan is never the same.
Budgeting accordingly, could be the difference in you consistently increasing your portfolio or you slowing the growth in your investment career.
All of our calculators are Microsoft Excel based files. This allows you to save and archive each deal analysis, as you see fit for future reference.
Not ready to purchase now? No problem…
See a helpful tutorial on our YouTube page here.
Thanks for joining us today faithful readers – future leaders.
We hope this article has been helpful for you.
Love ya and continue to strive for growth.
Please comment if you found this article helpful.
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