Calculating Value, Income, and Rate of Return for Beaumont CA Commercial Property

BEAUMONT CA COMMERCIAL REAL ESTATE

Calculating the value, income, and rate of return on Beaumont CA Commercial real estate investments need not be complicated. Here are three monetary aspects of an investment that share a mathematical relationship. They can help you determine a tangible return on a Beaumont CA investment like commercial Beaumont CA retail, Beaumont CA office, Beaumont CA industrial and Beaumont CA multifamily real estate:

• Value: The cost or market value of a Beaumont CA property.
• Income: The estimated annual income the Beaumont CA property can produce.
• Rate of Return: An annual percentage return on the Beaumont investment.

To calculate the value of a Beaumont CA income property, simply divide the annual income by the rate of return, or:

VALUE = INCOME/RATE OF RETURN

To calculate the income of a Beaumont CA income property, simply multiply the rate of return by the market value, or:

INCOME = RATE x VALUE

To calculate the rate of return of a Beaumont CA income property, simply divide the income by the market value, or:

RATE OF RETURN = INCOME/VALUE

Keep in mind the rate of return should not be confused with the Capitalization Rate, also known as the Cap Rate.