As a real estate investor, you have 2 options for managing your properties. One option is to be a DIY landlord, and the other option is to hire a professional property manager. If you’re asking yourself “should I hire a property management company, or should I self-manage?”, there is no right or wrong answer. However, …
7 Reasons to Invest in the Pacific Northwest Thinking about investing in Pacific Northwest real estate? Now is the perfect time to make the move. Here are our top 7 reasons to invest in the Pacific Northwest.1. JobsHigh tech companies flock to this area. The Portland area has been nickmnamed the “Silicon Forest” due to …
Calculating Property Value Based on a Net Return Via Capitalization Rate The common measure of rental real estate value based on net return rather than gross rental income is the Capitalization Rate (or Cap Rate). In contrast to the GRM, the Cap Rate is not a multiplier but a rate of annual return.Before you can …
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What Is a Debt Coverage Ratio (DCR)? Debt Coverage Ratio (DCR), sometimes known as the Debt Service Coverage Ratio (DSCR), compares an investment property’s Net Operating Income (NOI) with its debt service.Lenders use this ratio to calculate whether or not you will be able to generate enough income to pay your debts. Most commercial lenders …
How is the Debt Coverage Ratio (DCR) Calculated? Read More »
Loan to Value Ratio (LTV) What Is It?When considering how to invest in real estate, one term you may see come up time and again is loan to value ratio (LTV). It is a lending risk assessment ratio that lenders examine before approving a loan.How Is It Calculated?The LTV is determined by what percentage an …
What is a Loan to Value Ratio (LTV) and How Is It Calculated? Read More »
WHAT IS GROSS RENT MULTIPLIER? The ratio of a property’s price to gross rental income. It tells you how long it will take for an investment property to pay for itself. For a prospective real estate investor, a lower Gross Rent Multiplier (“GRM”) represents a better investment opportunity. Similar to other property valuation methods, GRM is effective …