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

By
Real Estate Agent with Garrigus Real Estate 01844441

YUCAIPA CA COMMERCIAL REAL ESTATE

Calculating the value, income, and rate of return on Yucaipa 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 Yucaipa CA investment like commercial Yucaipa CA retail, Yucaipa CA office, Yucaipa CA industrial and Yucaipa CA multifamily real estate:

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

To calculate the value of a Yucaipa 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 Yucaipa 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 Yucaipa 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.

Posted by

Todd & Devona Garrigus

Broker / REALTORSĀ®

951.490.3698 | Direct for Todd
951.490.3683 | Direct for Devona

www.GarrigusRealEstate.net
CalBRE# 01844442/01844441

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