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

By
Real Estate Agent with Garrigus Real Estate 01844441

REDLANDS CA COMMERCIAL REAL ESTATE

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

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

To calculate the value of a Redlands 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 Redlands 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 Redlands 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 / REALTORS®

951.490.3698 | Direct for Todd
951.490.3683 | Direct for Devona

www.GarrigusRealEstate.net
CalBRE# 01844442/01844441

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