If you’re new to real estate investing, you’ve probably heard someone say, “run the numbers”. Sure, that sounds like a good idea, but how exactly do you do it?
There are countless ways to analyze a property for cash flow. In fact, there are so many ways, it can be downright overwhelming to try and cut through the clutter.
Early on as an investor, I remember feeling frustrated without a way to scrutinize the potential performance of properties. Most of the formulas that I could find seemed so complex and non-applicable to my endeavors as an investor in small multi-family buildings. Fortunately, I discovered three equations that really hit home!
In this quick cheat sheet, I walk you through the calculations that I use day in and day out when considering whether to purchase an investment property. The guide is free to download and very handy if you are thinking about buying a small multi-family.
Remember, when it comes to buying real estate, there’s a lot more to it than calculating numbers on a spreadsheet – this is especially true if you’re planning on occupying the building as your primary residence.
Please contact me if you’re in the process of buying a multi-family in the Boston area. I’m an experienced buyer agent specialized in residential buildings with 2-4 units and will ensure you’re best interests are met.