Chapter 12
Valuing Property through Number Crunching
IN THIS CHAPTER
Getting a return on your investment
Understanding the mysteries of Net Operating Income
Delving into cash flow
Looking at three basic approaches to valuation
Determining what you should pay for a property
With the help of your real estate team, you should narrow your real estate investment opportunities down to just those properties that seem to have the best chance to produce financially in the long run. In Chapter 11, we cover the basics of property valuation and provide you with the information you need to examine the leases and operating expenses of prospective properties.
In this chapter, we get down to the business of crunching the numbers. We cover the essential elements of understanding and arriving at a property’s income and expenses and Net Operating Income — and we explain what that is! We then take these important numbers a step further and show you the best valuation tools traditionally used by appraisers ...
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