CASH ON CASH PROPERTY ANALYSIS.
LOOKING TO BUY A RENTAL PROPERTY?
PROPERTY METRICS. RENTAL PROPERTY EVALUATION.
If you have investing in a rental property, there are many property metrics when it comes to purchasing a rental property. Your critical decision is dependent on cash on cash return analysis. You want to buy the least expensive home in the neighbourhood for appreciation of faster home value. Rental property analysis includes highest rental potentials, vacancy rates, occupancy rates, cap rates, and Comparative Market analysis.
Here is a glimpse of the calculations included in Your cash on Cash Analysis Formula:
Pre-tax Cash Flow=Annual gross rents+other income-vacancy-operating expenses-debt service.
Cash on Cash Return=(Annual Pre-Tax Cash Flow / Actual Cash Invested) x 100.
There are many other metrics involved when it comes to rental property evaluation. Other Investment Scenarios include fluctuations in Mortgage Rates or Vacancy Rates; Property Depreciation or property taxes.
Don’t be overwhelmed! Sheema Kalra & her Team will be guiding you every step of the rental property purchase process.