Worry Free Ownership Program. Through Dawson Peak Realty, you can enjoy worry free ownership of your investment real estate.
With “Cap Rates” at their highest levels in over sixty years, we anticipate significant growth in values in the next five to ten years more...
Calculating your ROI is crucial in you success as a real estate investor.
HOW TO CALCULATE YOUR INVESTMENT ROI
Real estate is often thought of as a great investment because it can be rented out. However, if you are not careful, you can end up buying property that is a poor investment. To determine a property is a good investment, you need to calculate the real estate return on investment, or ROI.
Instructions 1) Calculate how much you would earn from the real estate. Add up the money you would bring in from renting out or leasing the property each month. Do not deduct any expenses yet. Multiply the number by 12 to get the yearly total.
2) Add up your expenses for the real estate. Include taxes, insurance, mortgage payments and repairs and any other expenses pertaining to the property. Be sure to convert all numbers to yearly numbers. For example, you may have expenses of $1,500 a year for taxes, $50 a month ($600 a year) for insurance, $375 a month ($4,500 a year) for mortgage payments and $400 a year for repairs. That would be a total of $7,000 a year for expenses.
3) Figure the amount you have invested. Down payments and costs of repairs made before renting or leasing the property are considered investments. Repairs made while you are renting or leasing the real estate fall under expenses. For example, if you put $15,000 down on the real estate and made $5,000 in initial repairs then your total investment is $20,000.
4) Compute the net operating income. Your net operating income, or NOI, can be found by taking the total amount that you would earn from renting or leasing the real estate and subtracting the total expenses. That number will be your NOI. Using the examples above, if your yearly earnings were $8,400, your NOI would be $8,400 - $7,000 = $1,400. So, $1,400 would be the NOI.
5) Use the NOI to get the ROI. Divide the NOI by your total investment amount. The number that you will get will need to be converted to a percentage by moving the decimal point two places to the right. Using the examples above, the ROI would be $1,400/$20,000 = 0.07, which would be 7 percent for the ROI.
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Atlanta | 3 Bedroom | Price: $ 79.000
Atlante offers great opportunities at these price points to maximize our investors ROI. Atlanta is one of Dawson Peak's targeted markets. more...
Montgomery | 3 Bedroom | Price: $ 45.000
Dawson Peak has established an infrastructure in Alabama to support the great opportunities in this state which has maintained property values better than the harder hit states. more...
