A brand-new investment property analysis tool is now available…and it would be my pleasure to help run some numbers with you.
Did you know that two-thirds of individual’s net worth comes from real estate? That’s according to Kiplinger – so owning property is a great way to build wealth.
But what about owning an investment property?
Based on data from Fannie Mae and Freddie Mac, about one in every six or seven purchases are for an investment property. So building wealth via investment property income and appreciation is a pretty popular strategy.
So how can you better evaluate the decision to enter the investment property market?
Whether you’re a realtor helping clients make this decision or a buyer interested in purchasing yourself, I have a new and unique tool that will calculate the return on an investment based on area-specific appreciation, rental rates, and costs to buy and sell.
This is a fantastic way to do some analysis on would-be properties.
Important metrics such as cash-on-cash return, as well as the compounded annual return over time, are easily illustrated to help you make better decisions on selecting the best opportunities in this market.
A Sample
Here’s a sample with the following assumptions – 3 unit property, purchase price $725K, monthly rents of $3,900, 30-year fixed mortgage at 6.99%, 25% down payment:
Assuming this buy-and-hold transaction over 9 years, here’s the cumulative cash return:
Here’s the annual return…
But what’s most relevant is the Annual Average Compounded Return, so you can measure this return versus other investments:
In Conclusion
As you can see, this is an extremely helpful tool to help analyze a particular income producing property to determine whether is a good investment or not!
Reach out to me today so I can share this exciting new tool with you.
