How to Calculate, Property Flip or Hold, Real Estate Investment
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)...
How to Calculate, Property Flip or Hold, Real Estate Investment
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...
How to Calculate, Property Flip or Hold, Real Estate Investment
Equity After Refinance — The equity left in the property. ARV – Loan Amount —————————— = Equity After Refinance $2,000,000 – $1,440,000 ———— =...
How to Calculate, Property Flip or Hold, Real Estate Investment
Cap Rate (ARV) — Capitalization rate, or cap rate for short, is the ratio of NOI to property value. The lower the Cap Rate, the higher the property value, and the higher the Cap Rate the lower the property value, or the purchase price when buying. It’s used to...
How to Calculate, Property Flip or Hold, Real Estate Investment
Cap Rate (Purchase) — Capitalization rate, or cap rate for short, is the ratio of NOI to property value. The lower the Cap Rate, the higher the property value, and the higher the Cap Rate the lower the property value, or the purchase price when buying. It’s used...
How to Calculate, Property Flip or Hold, Real Estate Investment
Cash on Cash — The cash income earned on the cash invested in a property. Annual Cash Flow ÷ Total Investment —————————— = Cash on Cash $29,833 ÷ $410,400 ———- =...