Investment Property Calculator (Investment properties for sale)
March 25th, 2008
I was invited to an open house by a broker. It was more of an investment property. This is what the broker told me about the property:1*** Unionport Road, $119K, CC $543.33, tenant paying $940The tenant that lives in there is renovating the apartment himself. Does this sound like a scam or am I viewing this wrong? The…
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Many real estate companies include an investment property calculator on their website. This is a tool that can provide you with a rough estimation of how much would a private investment property cost.
How Does It Work?
The investment property calculator uses an algorithm to calculate the approximate value of your investment. It combines factors such as rent, cash operating revenue, cash operating expenses, the amount of taxes in order to measure income changes that result from owning a private investment property.
However, you should know that an investment property calculator is nothing but a rough estimation of how much an investment property would cost and you shouldn’t take it for accurate real financial advice. Before you make an investment it is best to consult a financial adviser.
Assumptions
An investment property calculator generally makes a series of general assumptions to simplify the algorithm. Such assumptions include approximating your cash operating expenses to be the same for all the months of the year. The building allowance also has an approximated value
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and the depreciation allowance is not taken into account.
Explanation of Terms
Monthly Rental Income
Entry Filed under: Investment Banking
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