You need to constantly change it to reflect
Friday, July 31st, 2009
You need to constantly change it to reflect interest rates, because a realestate might be profitable at 12 times rent when interest rates are low, but a money loser at eight times rent if the financing is expensive. If the common rate is .08, meaning investors in the area expect only an 8% return, the value would be $550,000. No realestate formula is perfect, and all are only as good as the figures […] If the gross income is $76,000 per year, and the expenses are $32,000, you have net income before debt-service of $44,000.
Baltimore real estate
Information is deemed relaible but not guaranteed.
Popularity: 19% [?]