(850) 473-3983

Facebook icon Instagram icon Twitter icon YouTube icon
Measuring a Real Estate Investment

With any measurement based on a future predictions or hypotheticals, we know that many parameters, and events can change the results,but that shouldn't stop us from doing our due diligence on the front end of investment properties.

Let's take a look at the kinds of properties I focus on, which are single family homes that are easy to finance with 20% down for investors.

Below is an example of a home purchased for $100,000 with a $20,000 down payment and an $80,000 mortgage at 5% interest.  I used a 2% property appreciation rate and 2% annual increase for rents and expenses, and a 10 year holding period.

Annual Rental Income:  $1000 per month rents less 2% vacancy = $980 * 12 = $11,760 per year. 

Basic view:  Invested $20,000 (down payment) for 10 years and then cashed out.

See the chart that shows the growth. (Chart is courtesy of Chris Bird with CRS and came from his investment analysis course which I attended).

Investment Anaylsis

Feel free to utilize this formula and information when analyzing your own real estate investments. Reach out if you have any questions about analyzing real estate investments in the Pensacola area. 

Sales Office 4400 Bayou Blvd. #52B, Pensacola, FL 32503  (850) 453-9220 www.RealtyMastersofFlorida.com 
Follow us on Facebook ~ Twitter ~ YouTube 

08-02-2019
Pam Keen Brantley
Real Estate Investments
08-06-2019

  • Opportunity Zones and Capital Gains Taxes
  • Maintenance Expenses
  • October Community Events
  • HOA Management
  • Renters Insurance
  • Hurricane Insurance
  • Landlords
  • Community
  • Mailbox Key
  • Real Estate Investments
  • Wear & Tear Versus Damage
  • Pest Control
  • Moving Resources
  • Blue Angels
  • Rents in Downtown Pensacola
  • Rent Assistance
  • Listing your Home for Sale and/or Rent
  • New Year's Resolutions
  • Hurricane Michael
  • Smoke Detectors
  • Key Safety
  • Downsizing
  • Holiday Events
  • Septic Tanks
  • Gulf Power Outage Map
  • Moving Tips
  • Burning Outdoors
  • Lawn care
  • Multi-family
  • Fall Events
  • #spotthebear
  • Safety
  • HOA
  • School Grades
  • Bulk Item Pick Up
  • Housing Scams
  • Subleasing
  • Steps for First Time Home Buyers
  • 20 Year Anniversary
  • HVAC
  • House Hunting Tips
  • Real Estate Market
  • Seminars and Personal Assistant
  • Rent or Sell
  • Pensacola area Zip Codes
  • Build Credit
  • New Construction in Pensacola
  • Energy Tips
  • How to Find HOA Rules
  • Preparing for Freeze
  • Holiday Safety Guide
  • Maintenance Do's and Dont's
  • Home Warranties
  • Credit Score
  • Roads
  • Unapproved Dog List
  • Maintenance Tips
  • Pensacola Rental Inventory
  • Home Buying
  • Tenants
  • Pensacola Rental Homes
  • Beulah Middle School Construction
  • Safety Tips
  • Things to Do
  • Realty Masters Team
  • Item Donations
  • Pensacola Rental homes
  • NARPM
  • Bed Bugs
  • Moving out
  • Community Involvement
  • Managing Rental Properties
  • rental market
  • Pensacola Real Estate Market
  • Baby Boomers
  • Buying A Home
  • Waterfront real estate
  • New Construction
  • Closing Costs in Real Estate Sales
  • Senior Housing Communities
  • first time home buyers
  • Selling your home
  • Buying a Home
  • Capital Gains Taxes & Opportunity Zones
  • The Price You Pay- Maintenance Expenses
  • Fall Pensacola Area Events
  • How to Report an HOA Violation
  • 3 Reasons to Get Renters Insurance
  • Nicole St. Aubin Benavente
  • Erica Parker
  • MacKenzie Rathbun
  • Pam Keen Brantley
  • Nicole St. Aubin
  • Rebekah Perkins
  • Michael Longsdon
  • Julie Benson
  • Jay Schwartz
  • Chuntell Patterson
  • Carlin Symmes
  • Realty Masters
  • David Keen
  • Mitch Adcox
  • Rick Puckett
  • Sheri Harris