Investment Analysis

The Investment Analysis section displays six key data that real estate investors use to analyze the viability of an investment:

	Gross Rent Multiplier. This number illustrates the relationship between the market value of the property and the potential monthly income. The lower the better.
	Gross Potential Income. This is the property's annual income if it is 100% occupied and all rents are actually collected.
	Effective Gross Income. This is the actual income collected taking vacancies into account.
	Net Operating Income. This is the number of dollars a property returns taking vacancies and expenses into account, but ignoring debt service (mortgages) and income taxes.
	Before Tax Cash Flow. This is the number of dollars a property returns taking vacancies, expenses, and debt service into account, but ignoring income taxes.
	After Tax Cash Flow. This is the number of dollars a property returns taking vacancies, expenses, debt service, and income taxes into account.

To see a description of these fields, right-click on the Investment Analysis section of this Tab (not on the Investment Analysis table itself, but on the area surrounding it). A pop-up screen will appear as shown in the example below.

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Send mail to [email protected] with questions or comments about this web site. Copyright © 2001 RA40 Software Last modified: May 03, 2001

Send mail to [email protected] with questions or comments about this web site.
Copyright © 2001 RA40 Software
Last modified: May 03, 2001