12 Real Estate Investment Calculations Every Investor Should Know
Looking for a one-stop shop to all of the basic real estate investing calculations you’ll ever need?
Then you’re in the right place!
But sometimes the acronyms and jargon can get in the way.
The math behind real estate investment calculations is really pretty simple.
Don’t worry, we’ll cut through all the clutter and simplify all the numbers you’ll need to know.
These are the calculations I use in my own real estate investing.
1. Net Operating Income (NOI)
Net Operating Income is the income left after accounting for your operating expenses and BEFORE debt service.
2. Capitalization Rate
It essentially tells you the rate of return of a property if you bought it for cash.
The Rent to Cost Ratio is another quick way to compare similar properties to each other.
3. Rent to Cost Ratio
The Gross Rent Multiplier is another way of looking at the rent to cost ratio, and basically gives you the same information in a different format.
4. Gross Rental Multiplier (GRM)
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