In the land of real estate investing you'll begin to hear a popular term when analyzing income producing property. Capitalization Rates, better known as Cap Rates. Cap rates are a way in determining the rate of return on an investment property.
How to Calculate Cap Rates
In order to calculate cap rates you'll need two other variables which are:
Net...
Housing is by far the most expensive budget item for practically everyone. So it should come as no surprise that we spend years of our lives working simply to pay for the place we call home. But exactly how many hours of your life are dedicated simply to having a place to sleep at night? And...
I've seen quite a few cool articles lately about using old shipping containers as homes and buildings. With a huge trade imbalance the United States often has left over shipping containers sitting at our ports without a purpose. Therefore many people have taken these excess containers and turned them into buildings, and which is a great solution...
Calculating real estate values can be as simple as 1, 2, 3!
There are three ways appraisers go about determining the fair market value of income producing property. These three approaches are:
Income Approach
Market Data / Comparable Sales Approach
Cost / Replacement Value Approach
Each of the models is unique and take a completely different viewpoint. You'll notice that I also used two...
This project took a few years and included ripping out a chimney that went from the basement to the roof, which became unnecessary when I put a new furnace in the house. The hardwood flooring is original maple and was carpeted over. The kitchen floor is new as there was no wood floor originally in the kitchen. A large...
"It's a lot easier to find something when you know what you're looking for."
I'm constantly checking real estate listing websites for deals. Although they're a lot harder to find than during the great recession they're still out there and it only takes one to make you tens or even hundreds of thousands of dollars, because as any good...
You could say that real estate has quite literally hit rock bottom in some areas of the country, since you can find free land, and possibly homes in some areas of the country, for free! If you've ever dreamed of moving out the rural Midwest and breadbasket of America you can find some great opportunities for real estate...
Think long term and try to pay off your mortgage early
Being a homeowner has many benefits, but being wed to debt isn’t one of them. Paying the minimum balance on your mortgage will keep you in debt for the majority of your life, as traditional mortgages are 25-year or 30-year commitments. Start thinking seriously about your financial future by...
So you think you're ready to get a pad for yourself? Buying a house, for many, is the single largest financial decision of their lives so It's no surprise then, that this decision shouldn't be taken lightly. The decision to tie yourself to payments for 15-30 years is huge. As someone who owns several residential...
Each year millions of wide eyed and money hungry gamblers flock to a neon lit sand pit hundreds of miles from the barren Sierras. They come in droves to test their luck with slots, cards, and roulette. Free booze pours as gorgeous people from around the world make these new guests feel like they hold the key...