About Real Estate Investment Calculator
The price you should pay for income-producing property is a function of the cash flow. Too many investors look at criteria other than cash flow and end up making bad investment decisions.

This application will tell you immediately what a property is worth based upon its cash flow.

The output consists of two numbers:
- ROE (Return On Equity): You have to spend a certain amount of money to buy and fix up a property. The ROE is the return on your money. If it isn’t higher than, say, a CD then the property is not a good investment.
- Cap Rate: Everyone talks about it but nobody knows how to calculate it.

The relevant inputs are these:
- Purchase Price
- Monthly Rent
- Upgrade Costs
- Financing
- Vacancy
- Other Income
- Operating Expenses (opex)
- Reserves

Defaults are set into the program; enter the values for your particular property to find out whether the ROE is acceptable. If it isn’t, offer a lower price.

What’s New in this Version
- New product icon

Details

Company:

George Fisher Advisors LLC

URL:

Real Estate Investment Calculator

Post Date:

May 21, 2009