- Allows changes to calculation on any factor affecting:
- Cash Flow
- Price/Rent Ratio (GRM)
- Return on Investment
- Total Investment Amount
- Used on individual properties
The purpose of this powerful tool is to allow you to determine the following for an individual residential income property:
- Real Cash Flow
- Real Rate of Return
- Real Total Investment Amount
- Real Price/Rent Ratio (GRM, or Gross Rent Multiplier)
The reason we emphasize “real” is because you can modify our standard default calculation parameters to your individual real-life needs.
Our standard default parameters are:
- Down Payment: 25%
- Interest Rate: Typical Current Quoted Rates for Residential Income Properties (1-4) (starts with about 4.5%)
- Property Management: Typical Current PM Rates (start with 8%)
- Vacancy: 4% (= 2 weeks/year)
Let’s say you want to put down 50% and you want to manage the property yourself. In our “What If?” Analyzer Tool, you can change the default “25%” Down Payment to “50%“, and change the Property Management Fee from “8%” to “0%“.
Click on the link, below to try it out and see how well it works for you! (See our SMART Glossary for help with any terms you may be unfamiliar with).
(click on image to try it out!)