How to Calculate, Property Flip or Hold, Real Estate Investment
In this video we are going to analyze a Flip scenario for a Single Family Residence. We’ll enter detailed income and rehab budget details to analyze our cashflow and return on investment. View reports and Lender Funding Summary letter to present to lenders....
How to Calculate, Property Flip or Hold, Real Estate Investment
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 that...
How to Calculate, Property Flip or Hold, Real Estate Investment
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...
How to Calculate, Property Flip or Hold, Real Estate Investment
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 – Any...
How to Calculate, Property Flip or Hold, Real Estate Investment
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 —————————— =...
How to Calculate, Property Flip or Hold, Real Estate Investment
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 Income ÷ Loan Amount...
