A Full Service Brokerage with a Specialty in
Investment Properties & Property Management
Tools and Resources for Investors
This page contains a number of write ups on various aspects of real estate investments, from benefits and advantages, to valuations, taxation, and other issues involved in making a sound decision. There is no particular order in which to read these postings. However, a guided way to go through them would be through the Case Study below.
Case Study – Analyzing an Investment Opportunity: Step By Step Guide. The case study is based on a hypothetical property in Denver, CO. The purpose of this case study was to illustrate the steps involved in analyzing a residential investment opportunity. It may not cover all aspects of the investment analysis, but it is very comprehensive. Where applicable, there are links to more explanations throughout this post.The objective is to show how one, systematically and objectively, can quantify the before-tax and after-tax cash flows, the proceeds from the sale, the taxes due on the sale, and the performance of the investment taking into account the income, financing, operating expenses, and his/her tax brackets.Adjusted Basis Cash Flows (calculation) Cash Flow After Tax(ATCF) Cash Flow Before Tax (BTCF) Cap Rate (using the) Discounting & Compounding Gross Operating Income (GOI) Gross Scheduled Income (GSI) Investment Decision Points Leverage Net Operating Income (calculating) NOI Primary Home (sale of) Time Value of Money Tax Due on Sale Tips for Successful Real Estate Investment Valuation (methods of)
Comments, questions are welcome.