Comments on: Apartment Investing – A Look at Five Year Investment Returns http://www.biggerpockets.com/renewsblog/2008/08/12/apartment-investing-a-look-at-five-year-investment-returns/ Learn, Network, Invest Tue, 24 Nov 2009 06:18:45 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: St. George commercial real estate http://www.biggerpockets.com/renewsblog/2008/08/12/apartment-investing-a-look-at-five-year-investment-returns/comment-page-1/#comment-59450 St. George commercial real estate Wed, 20 Aug 2008 16:08:03 +0000 http://www.biggerpockets.com/renewsblog/?p=1158#comment-59450 Thank you for sharing with actual numbers. That really helps to understand visually as to what you are talking about. Thank you for sharing with actual numbers. That really helps to understand visually as to what you are talking about.

]]> By: TenantPros | Free Retail Tenant Directory http://www.biggerpockets.com/renewsblog/2008/08/12/apartment-investing-a-look-at-five-year-investment-returns/comment-page-1/#comment-59437 TenantPros | Free Retail Tenant Directory Tue, 19 Aug 2008 23:26:58 +0000 http://www.biggerpockets.com/renewsblog/?p=1158#comment-59437 First of all, thanks for a great case study Ted. I have been buying shopping centers for years and I wish we had a few more good tools for commercial real estate in general. I just found your site for the first time...great site by the way! I added you to my bookmarks! First of all, thanks for a great case study Ted. I have been buying shopping centers for years and I wish we had a few more good tools for commercial real estate in general. I just found your site for the first time…great site by the way! I added you to my bookmarks!

]]> By: Brock http://www.biggerpockets.com/renewsblog/2008/08/12/apartment-investing-a-look-at-five-year-investment-returns/comment-page-1/#comment-59414 Brock Mon, 18 Aug 2008 14:11:32 +0000 http://www.biggerpockets.com/renewsblog/?p=1158#comment-59414 Matt, 3% of the expenses is less than 3% of the rent. You'll see a net gain with the numbers given. I was confused like Mike. I'm glad he asked his question. It's pedantic (because it really doesn't matter from the investor's point of view), but the rent really isn't going up in real dollar terms. It's flat. That 3% increase is just the inflation protection that real estate enjoys and few other investments do. The Fed can inflate the supply of money, but it can't inflate the supply of land. Matt, 3% of the expenses is less than 3% of the rent. You’ll see a net gain with the numbers given.

I was confused like Mike. I’m glad he asked his question.

It’s pedantic (because it really doesn’t matter from the investor’s point of view), but the rent really isn’t going up in real dollar terms. It’s flat. That 3% increase is just the inflation protection that real estate enjoys and few other investments do. The Fed can inflate the supply of money, but it can’t inflate the supply of land.

]]> By: Matt http://www.biggerpockets.com/renewsblog/2008/08/12/apartment-investing-a-look-at-five-year-investment-returns/comment-page-1/#comment-59374 Matt Sat, 16 Aug 2008 18:02:45 +0000 http://www.biggerpockets.com/renewsblog/?p=1158#comment-59374 Great article thanks for posting - One question based on this statement: "We will assume that the building’s income has grown by 3% a year. We will also assume that the expenses have increased 3%." If the expenses also increased by 3% how did the NOI jump to $32,169.86 ? Great article thanks for posting –
One question based on this statement:

“We will assume that the building’s income has grown by 3% a year. We will also assume that the expenses have increased 3%.”

If the expenses also increased by 3% how did the NOI jump to $32,169.86 ?

]]> By: Ted Karsch http://www.biggerpockets.com/renewsblog/2008/08/12/apartment-investing-a-look-at-five-year-investment-returns/comment-page-1/#comment-59359 Ted Karsch Fri, 15 Aug 2008 15:34:36 +0000 http://www.biggerpockets.com/renewsblog/?p=1158#comment-59359 Great question. Taxes, insurance and other maintenance expenses are subtracted from the Gross Income to give us the Net Operating Income, which is the figure we are working with above. Great question. Taxes, insurance and other maintenance expenses are subtracted from the Gross Income to give us the Net Operating Income, which is the figure we are working with above.

]]> By: Mike http://www.biggerpockets.com/renewsblog/2008/08/12/apartment-investing-a-look-at-five-year-investment-returns/comment-page-1/#comment-59357 Mike Fri, 15 Aug 2008 15:25:34 +0000 http://www.biggerpockets.com/renewsblog/?p=1158#comment-59357 I'm confused, what about taxes, insurance, other expenses? Do you factor these into your calculation? I’m confused, what about taxes, insurance, other expenses? Do you factor these into your calculation?

]]> By: rsudher http://www.biggerpockets.com/renewsblog/2008/08/12/apartment-investing-a-look-at-five-year-investment-returns/comment-page-1/#comment-59325 rsudher Thu, 14 Aug 2008 16:10:58 +0000 http://www.biggerpockets.com/renewsblog/?p=1158#comment-59325 "Your site is very informative n helpful .. thanks…..keep it up" .IndiaSurfer is social news submiting site.submit your posts get more traffic to your site.vote for best stories. <a href="http://www.indiasurfer.com" rel="nofollow">http://www.indiasurfer.com</a> “Your site is very informative n helpful .. thanks…..keep it up” .IndiaSurfer is social news submiting site.submit your posts get more traffic to your site.vote for best stories.
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