Key takeaways: ROI in real estate is a metric used by investors to predict the profitability of a property investment. Calculate ROI by dividing the difference of selling price and investment price (aka the gains) by the investment price. ROI is used to determine... 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
