Property calculators can remove the emotion from a property to help you accurately analyze a property’s worth based on the math. This tool can help you track cash flow, determine your ROI and let you know if your rental price is on target.
An income property calculator needs accurate information in order to be helpful. The more you know about the property value, mortgage rate, loan terms, expected rental income and vacancy rate are all numbers that will help you evaluate a property’s potential to grow your wealth.
A Good Income Property Calculator:
- Will tell you if you need to raise the rent.
- Will tell you if you can afford to reinvest.
- Will tell you if you are following the percentage rules.
Property calculators cannot predict future change. And the one thing you can be sure of is change is going to happen. Change can be caused by many things: tax rates rising or road restructuring that limits drive by customers for a business. Changing circumstances will keep you reevaluating your properties.
What is a property calculator good for? Check out this article for how it can help. #Ironclad
Key Points:
- 1An income property calculator takes the data you give it and returns actionable numbers about your CAP rate.
- 2Monthly rental income should be no less than 1% of the purchase price after repairs.
- Operating expenses should not exceed 50% of income.
