Real Estate Investing - A Quick Method
When looking at Investment Properties there are a number of tools we use. Return of Investment and Cap Rate are two favorites.
However, when you are out looking at Investment Properties or looking at lots of Investment Properties it is hard to get the numbers on the more complex evaluations on the fly. If they are provided you would still want to look at the underlying numbers.
I have a client looking at multi unit dwellings. Residential Investment Properties with 2-4 units and apartment houses. The number one factor he looks at when evaluating properties is Cost Per Door. (What the cost is for each Residential Unit.)
Now at the end of the day I do not think Cost Per Door is a very solid method but it does give you a quick look at initial Investment Properties cost. If you know the rental market and what each unit will bring in it provides a really good picture. Then you can look closer at the other numbers.
There are lots of ways to evaluate Investment Properties. At the end of the day the best way is the one you feel most comfortable with and meets your Real Estate Investment Needs.
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Home Point Real Estate is a full service Real Estate Firm located in Brentwood California and serving the East Contra Costa County Communities of Brentwood, Antioch, Oakley, Pittsburg, Discovery Bay and Beyond.
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