R.E. Investment: How to analyze a "Buy and Hold" property
Good morning Friends, Welcome to the next installment in the Investment Series, today we will be talking about how to analyze a Buy and Hold investment property. Simply because there are multiple types of investment properties to Buy and Hold the first step is to determine what type of properties you prefer, be it Single Family homes, Duplexes, Triplexes or Apartment buildings. Once that determination has been made then as you locate properties you want to find out the Gross Rental Income and the Monthly Expenses. You will need to know the monthly expenses to get the Net rent income, that's important info to determine the Cap Rate for the property. The Cap Rate is the rate of rate of return you can expect a rental property to generate based on the net income produced. The formula is Net Operating Income (NOI)/Current Market Value = Cap Rate and its a great starting point for analyzing a rental income property. Let me be clear, it is not the only factor in determining the v...