Property Flip or Hold – How to Calculate Rent to Value (At Purchase)
https://youtu.be/_7Epa3gJtoE Rent to Value (At Purchase) - Measures the monthly gross income to the purchase price. The higher the rent to value ratio, better the investment. Gross Income ÷ Purchase Price ------------------------------ = Rent to Value (At...
Property Flip or Hold — How to Calculate Internal Rate of Return (IRR)
https://youtu.be/d1w3H9VvK9w Internal Rate of Return — The IRR measures a properties long term profitability by taking into account the annual net cash flow and the change in equity over time. Calculating IRR, the rate of return formula sets Net Present Value (NPV) to...
Property Flip or Hold — How to Calculate Return on Investment (ROI — 1st Year)
https://youtu.be/WmFQrRN3KTs Return on Investment (1st Year) — The net profit made on an investment to the total investment. (((Equity - Projected Soft Cost) + Cumulative Cash Flow) - Total Investment) ÷ Total Investment ------------------------------ = Return on...
Property Flip or Hold — How to Calculation Equity Multiple (1st Year)
https://youtu.be/YXpoGCf3ltY Equity Multiple (1st Year) — The total cash return over the life of an investment. ((Equity - Projected Soft Cost) + Cumulative Cash Flow) ÷ Total Investment ------------------------------ = Equity Multiple (1st Year) (($645,358 - $0) +...
Property Flip or Hold — How to Calculate Return on Equity (1st Year)
https://youtu.be/E86DAOpN3nc Return on Equity (1st Year) — Return received based on rent related to the property equity. Cash Flow (1st Year) ÷ Equity (1st Year) ------------------------------ = Return on Equity (1st Year) $29,833 ÷ $645,358 ---------- =...
Property Flip or Hold — How to Calculate Equity at Purchase or After Refinance
https://youtu.be/ny9HW0_4GLc Equity After Refinance — The equity left in the property. ARV - Loan Amount ------------------------------ = Equity After Refinance $2,000,000 - $1,440,000 ------------ = $560,000