Free Math Formulas For Income Property Success
By Oscar T Blasingame, Esq., St Petersburg, Florida
Every property can generate income, but not every property will generate profits. The fact that a certain piece of income property doesn’t turn a profit doesn’t make it a bad investment. These properties may offset cost such as buying a duplex, living in one unit and renting out the other to offset the costs of mortgage and other expenses. Or, a property may be purchased on speculation of value appreciation and income from the property reduces or eliminates holding costs.
While these are good investments, our focus is on income properties that turn a profit or significantly offset or eliminate personal housing costs. Before buying any income property you must do you due diligence to determine not just the potential income, but the potential profits. A number of simple math formulas can be used to accurately calculate potential income and profits.
From the simple Capitalization Rate (CAP RATE) formula to the more complex Return on Investment (ROI) formula you won’t achieve income property success with doing the math. That would be like trying to make a three point shot with your eyes closed.
Click the link Below for my free Math for Income Property Success:
You can fall in love with a piece of property, but you need to do the math to achieve profits and income property success!