Key takeaways: A real estate ROI percentage is useful only when it identifies the return, the denominator, the holding period, and whether the result is projected or realized. Financing can increase return on invested cash, but debt service can reduce cash flow and... Read More
Key takeaways As a real estate investor, a property’s cap rate is just one of the many ways to evaluate the viability of an investment. A “good” cap rate is determined by how much risk you’re willing to take and what rate of return on investment you expect. On the... Read More
Key takeaways CapEx refers to expenses that improve or add to a property, and are typically reserved from monthly revenue due to their often substantial cost. CapEx is distinguished from operating expenses and must be planned and budgeted for separately, often via a... Read More
Key takeaways: NOI equals effective gross income minus the recurring operating expenses required to run a property. Property taxes and insurance reduce NOI. Mortgage debt service, owner income taxes, depreciation, and major capital expenditures generally do not.... Read More
