Property Flip or Hold – Flip – How to Calculate – Cash Needed – Closing – Holding – Equity Profit
https://youtu.be/8nUByiHuzzM Cash Needed (All In Closing) - The Total Cash needed to purchase property and rehab. Purchase Price - Flip Mortgage Loan Amount + Repairs + Closing Cost Amount --------------------------------------- = Cash Needed (all in closing) Cash...
Property Flip or Hold – How to Calculate – Flip – Maximum Purchase Price
https://youtu.be/OjxoZwiHCAw ARV (After Repair Value) - The Estimated Value of the Property after all repairs are completed. Repairs - Repairs that are needed to bring the property to habitable and working condition. In this case, also add any improvements to the...
Property Flip or Hold – How to Calculate Purchase Price Based on Nearby Area Cap Rate
https://youtu.be/ly_Fm336heo Calculate property value based on Nearby Area Cap Rate and property Yearly NOI. Used for commercial properties, Multi-Family 5-units and above. Net Operating Income ÷ Nearby Cap Rate ---------------------- = Property Value
Property Flip or Hold – How to Calculate Hold Assumptions Rent – Mo. Projections
https://youtu.be/MEI2_0J2VuQ Gross Income - Total income of rent received from tenants to pay for the space. Vacancy Rate % - The percentage of time rental income is lost due to a property being not rented. Usually between 5% to 10% of the Gross Income. Other Income -...
Property Flip or Hold – How to Calculate Net Yield
https://youtu.be/iJml7ZC8V_M Net Yield - Measures yearly cash flow to the after repair value (ARV). This metric takes into account all of the expenses including the debt service. Yearly Cash Flow ÷ After Repair Value ------------------------------ = Net Yield $29,832...
Property Flip or Hold – How to Calculate Debt Yield
https://youtu.be/kSNBFO-ZysQ Debt Yield - Measures yearly net operating income (NOI) to the loan amount. This metric is used to determine the risk of a loan. Provides lenders a measure of risk independent of interest rate and amortization periods. Yearly Net Operating...