![]() | |
![]() | |
![]() |
Real Estate Information |
|
![]() |
Real Estate Appraisal - Rental Properties
Real estate appraisal for rental properties isn't the same as for single family homes. If you were looking at a 24-unit building, it would be difficult to find similar ones nearby that have recently sold. Therefore, a market analysis using comparable sales isn't normally used. It is also not ideal to use replacement costs either. How do you figure replacement cost if there is no land for sale nearby with proper zoning? This is used as a secondary method, though, and can tell you if maybe you should be building instead of buying. Real Estate Appraisal Using Capitalization Investors buy rental properties for the income. Therefore it is the income that is used to determine value. The rate of return expected by investors in a given area gives you the capitalization rate, and this is what you use to accurately appraise an income property. Start with the gross income. Subtract all expenses, but not including loan payments. If a building's gross income is $82,000 per year, and the expenses $30,000, you have a net before debt-service of $52,000. Now apply the capitalization rate to this figure. If the common capitalization rate is .10, for example (ask a real estate agent), divide the income of $52,000 by .10, and you get $520,000. This is the value of the building. If the usual rate is .08, meaning investors in the area expect an 8% return, the value would be $650,000. Easy Real Estate Appraisal? Net income before debt-service, divided by the "cap rate:" It really is a simple formula. The tough part getting accurate income figures. Is the seller showing you ALL the normal expenses, and not exagerating income? If he stopped repairs for a year, and is showing "projected" rents, the income figure could be $15,000 too high. This would mean the building is worth $187,000 less (.08 cap rate) than your appraisal shows. Another thing smart investors do when buying, is to separate out income from vending machines and laundry machines. If these provide $6,000 of the income, that would add $75,000 to the appraised value (.08 cap rate). Do the appraisal without this income included, then add back the replacement cost of the machines (probably much less than $75,000). Be careful when using any real estate appraisal method. No formula is perfect, and all are only as good as the figures you plug into them. Used wisely, though, real estate appraisal using capitalization rates is one of the most accurate methods. Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
MORE RESOURCES: Real estate inquiries by wealthy New Yorkers into Florida properties jump 50% after Mamdani primary win Fox Business Residential real estate developers cut jobs as downturn deepens The Globe and Mail Real estate CEO warns of growing ‘exodus’ as people have ‘given up’ on California — but where are they going? Yahoo Finance Compass to share exclusives — if brokers, MLSs play by 2 rules Real Estate News by RealEstateNews.com Dave Ramsey Saves Listener With $1 Million in Her 401(k) From Becoming a ‘Victim of the Real Estate Market’ Realtor.com Russian Demand for U.S. Real Estate Surges 78.5% The Moscow Times Providence Hill Real Estate owners buy office building near Tuckahoe HQ Richmond BizSense What renters really want | Real Estate Newsletter Inquirer.com Nantucket’s Workers Are Living on the Margins The New York Times OT Real Estate Spotlight of the Week: 1555 Graves Lane The Owensboro Times Here are businesses on the move in Marin, Solano, Napa, Sonoma and Mendocino counties The North Bay Business Journal Despite signs of market rebalancing, real estate in this NJ town remains hot. Here's why Bergen Record $1.225 million Symmes Township home sale among the week's top property transfers Cincinnati Enquirer Real Estate Transactions sungazette.com A Look At Plymouth Co Real Estate Numbers WATD 95.9 FM Business Spotlight: Trujillo Commercial Real Estate Group The Paso Robles Press Agent-built AI chatbot serves up real advice with a sense of humor Real Estate News by RealEstateNews.com NYC Real-Estate Execs Throw Money Behind Adams to Counter Rise of Mamdani The Wall Street Journal Berkshire County Real Estate Transactions for June 23-27 The Berkshire Eagle LOCAL REAL ESTATE TODAY 7.11.25 KQEN News Radio Berkshire region real estate sales – July 11, 2025 The Berkshire Edge TIM SCOTT REAL ESTATE - 83275 Caledonian Record Don Fenley: Tri-Cities housing market sees uptick in June Kingsport Times News A tale of two Floridas: Real estate industry torn over DeSantis' push to eliminate property taxes Fox Business RLTY: Reasonable Real Estate Income For Now (NYSE:RLTY) Seeking Alpha Homes for Sale in Manhattan and Brooklyn The New York Times Dawson County weekly real estate transactions, July 11 Central Nebraska Today Weekly building permits, real estate Boca Beacon Real estate investors are purchasing more U.S. homes as high prices lock out would-be buyers CBS News Florida real estate: See the most expensive home sales across the Treasure Coast in June Treasure Coast News Tampa real estate investment firm under investigation for potential deceptive practices Florida Politics EG Real Estate: 8 New Listings & 5 Sold East Greenwich News Jackson State To Offer Real Estate Course Radio NWTN How a legal battle of real estate titans affects home buyers Straight Arrow News SDCERS to lift infrastructure allocation as it trims real estate IPE Real Assets Queens real estate trends: What buyers are looking for, according to Compass agent Thomas Caramanno Queens Post NEO's industrial real estate market loosens slightly but remains tight Crain's Cleveland Business Mortgage Rates Today: The States Offering Lowest Rates – July 11, 2025 Norada Real Estate Investments The Seyon Group Acquires Industrial Portfolio in North Andover for $12.5 Million Boston Real Estate Times Michael Guthrie discusses real estate uncertainty amid Charlottesville zoning freeze Cville Right Now Real estate news: 18-unit apartment complex in Surf City fetches $7.4 million Orange County Register Department of Taxation and Finance dos.ny.gov Fond du Lac County property sold for $700K in real estate transfers for June 30-July 3 fdlreporter.com 2025-2030 Five-Year Housing Market Predictions U.S. News Real Estate TRS Texas commits $675m to real estate Private Equity Real Estate | PERE Patrick Cadle joins Grist Real Estate Mountain Messenger Hawaii residential real estate experts on negotiating and marketing homes in 2025 The Business Journals Navigating Trump's Tax Megabill: Winners and Strategies in Real Estate, Manufacturing, and Energy AInvest New Hampshire housing market sees 65 straight months of growth The Laconia Daily Sun Real estate feels weird right now — but not broken Rome Sentinel Developer, neighbors worked together to decide how a key corner of Austin will look The Business Journals Wake Up Your Real Estate: New Broker Compensation Law Affects Nonstop Local News Why mid-sized real estate is finally going solar pv magazine USA Local casino architect lists home in The Ridges Las Vegas Review-Journal Real Estate: What’s happening in the 2025 market The Daily Tribune News Real estate boss targeted in San Francisco with smear campaign The San Francisco Standard Confusing housing stats & real estate nerds Sacramento Appraisal Blog Where are home prices falling most in America? This SWFL community made top of the list Naples Daily News |
![]() |
![]() |
![]() |
RELATED ARTICLES
Home Appraisal Values Are Critical To most, owning a home is a necessity, but sometimes it is a matter of pride or a business investment. Home appraisal values become relevant if one wishes to sell his house. Investing in Real Estate Vehicle for Wealth Building Real estate is one of the best vehicles of building wealth. Historically real estate has outperformed other asset classes like stocks or bonds, and is reasonably predictable and less volatile. Finding The Perfect Maui Home For Sale If you are thinking of relocating to Maui, this articlewill hopefully guide you to making a positive decision whenthinking of buying a home there. Hopefully, by the end youwill be one step closer to finding a Maui home for sale,and being able to purchase it. Should You Sell Your Home Yourself? Are you thinking about selling your home? Would you like to sell it by yourself instead of hiring a real estate agent? If so it would be beneficial to review the pros and cons of selling your home by yourself before hanging out the sign.PROSSelling your home without an agent means More Money. Using Transformation Psychology to Sell Investment Properties Satisfying and lucrative real estate investment depends upon your correct assessment of profit potential, of course, but your ultimate success depends on your ability to transform a doghouse into a dollhouse. The renovation process involves physical work and choosing the best supplies, in order to create maximum positive emotional effect and profits. Secrets of Making Money from Real Estate - Part 4 Analyzing and finding the right property deals:Firstly read my other article on how to Buy the property at a discount, this will cover the basics on how to buy property at a lower than market value price. This is very important because It can completely change the aspects and financing the deal. Real Estate Investment Requires A Team I had a hard time at first with real estate investment. One of the reasons was that I tended to be a "lone wolf," trying to do too much myself. Dont Get Stuck Having To Deal With The Sellers Household Hazardous Wastes - After You Move In! I have a confession to make!I was just outside with Frankie (my dog) and noticed I stillhad an old car battery sitting by the foundation, at therear of my house.Yes, I'll admit it's not right, and quite environmentallyinsensitive for me to have it there. Finding, Fixing, Financing, and Flipping - The Short Course Most people get involved in Real Estate investing to make money.Pretty self-evident - or, is it?What would you say if I told you that everything you have been taught about Real Estate investing and making money "rehabbing" your real estate investments is wrong?Well, at least, much of it!Let's take a look at something that all too many people don't think about in their real estate investing - something that seems to be a secret formula to bringing in the most cash from your real estate investments. Are You Really A Twenty First Century Investor Today's residential real estate market for investors has become very competitive in most major markets. The vast majority of real estate investing seminars and clubs are encouraging you to search out desperate home owners or distressed properties to be rehabbed. High Tension for the Buyer and Seller of Real Estate Can Be Reduced Tensions can run high in both the selling and buying of real estate. After all, there is a lot of money and emotion involved! There are also time pressures and numerous privacy issues to deal with. Customer Service - The Real Estate Revolution Traditionally, real estate has been viewed as a sales industry. But perceptions are changing. A Real Estate Primer There are a great many books and web sites devoted to real estate investing out there, but most of them concentrate on one specific area of investing. It's often hard to find a general description of real estate investing, one that lists the various real estate investing strategies and how to get started. Real Estate Tax Incentives Lower Your TaxesTax incentives for real estate investors can often make the difference in your tax rates. Deductions for rental property can often be used to offset wage income. Practical Advice for Finding Irish Castles for Sale Have you ever wondered what it would be like to live in a castle?Have you ever dreamed of dancing in a grand ballroom that at one time was filled with princes and other nobility?If you find yourself dreaming of this lifestyle, you're not alone. Celtic castles, and all things medieval for that matter, have gotten very popular in recent years. Internet Battleground for Future of Residential Real Estate Real estate agents are gearing up to face the biggest shift in their industry since it's beginning. No longer the first in the path of homebuyers and sellers, agents have gone from top feeders to the bottom feeders with real estate consumers in just a few years. What to Look Out For When Buying Off Plan Buying Off PlanIt can be difficult to decide when every deal seems to be not to be missed!There are some key things I look for when buying off plan, whether it's in the UK or abroad it makes no difference.The property must be good value now ie it compares favourably with similar properties today, and is not based on properties going up in value 10% each of next 2-3 years. Real Estate Investing Skill Acquisition Real estate investing is not in any list of high school electives. You can't get an accredited degree in real estate investing. How to Get Financing after Filing Bankruptcy If you're thinking about buying a home but have declared bankruptcy in the past, don't give up hope. There are still ways for you to be able to find a loan, even if your credit history is less than sterling. 7 Marketing Methods for Real Estate Coaches You shower, shampoo, dress your best, check to see if you have plenty of business cards, drive about an hour, introduce yourself by saying "Hi, I'm Mary and I'm a coach" and the other person says, "Hi, I'm Jack and I'm a coach, too!". You meet more coaches than you knew existed. ![]() |
home | site map |
© 2006 TIGER MEDIA |