With real estate prices declining and market rents increasing, real estate investment is once again a viable cash-flow option in many East Bay communities.
Real estate investment is all about the numbers. The initial cost, the rehabilitation costs (if any), the market rents, cash-flow, and the long-term rate of return compared to other investment opportunities. While the previous market provided excellent short-term gains for investors who purchased and “flipped” properties, a down market is the perfect time to purchase long-term investment homes.
Our Investment Property Review includes:
- Market area review including specific properties that meet your requirements
- Cost to purchase
- Cost of financing / leverage
- Cost of rehabilitation, if applicable
- Estimated Market Rents
- Estimated Monthly Expenses
This enables you to analyze each potential investment property purchase for the following important parameters:
- Net operating Income
- Debt Service Coverage Ratio
- Before and after-tax Cash-flow
- Net Equity accumulation
- Average and Cumulative Return on Investment
If you are interested in becoming a real estate investor or are a current investor wanting to add to your portfolio, I invite you to call or email us to schedule your Investment Property consultation.