Mastering real estate, one step at a time
Learn about closing costs and how to calculate them as a real estate investor
Calculate a loan amortization repayment schedule and understand why it's an important planning step when taking out a loan
Calculate return on investment and learn what ROI means in real estate
What is Home Equity Line of Credit (HELOC) and calculate how much you may be able to borrow
Calculate loan-to-value ratio and learn what LTV means in real estate
Calculate how much to expect to pay for property management and decide if hiring a property manager is right for you.
Calculate your ARV (after repair value) and learn what it means in real estate investing
Calculate NPV & learn how to use net present value to analyze potential rental properties
Determine your IRR (internal rate of return) for a single cash flow
Debt-to-income (DTI) ratio is a key financial metric for real estate investors, as it helps determine how much leverage an investor can take on when acquiring a property. The DTI ratio is calculated by dividing the borrower’s total monthly debt payments by their gross monthly income. The result of this calculation gives lenders an idea of how well the borrower will be able to manage their current debts and what they can feasibly afford to borrow from them. Lenders tend to prefer borrowers with a DTI of 36% or less, but this can vary.
Learn how cap rate is calculated & why it's important for real estate investors
Cash flow is an incredibly vital element of real estate investing - understanding and properly forecasting it is often the make or break between a great investment property and money pit. Cash flow is defined as net operating income (NOI) minus the costs of servicing debt and CapEx. Higher cash flow sometimes means better returns but almost always means lower investment risk.
Learn how to calculate the gross rent multiplier of a particular rental property and find out how to use this metric.
Learn what appreciation means to real estate investors and how it can help you make the right decisions for your business.
NOI, or Net Operating Income, measures the profitability of an income-generating real estate asset (i.e. rental property). It’s calculated by subtracting operating expenses from the total revenue generated. NOI is a great way to see a property’s income potential, but it should be used in tandem with other real estate valuation metrics when making investment decisions.
Here's everything you need to know about DSCR loans in the real estate context.
Learn about how cash on cash returns are used when looking for investment opportunities in real estate and beyond.
Learn how 1031 exchanges work in real estate investing and how this tax rule can benefit rental property owners.
Brandon Hall explains the correct way to deduct escrow payments for your rentals