Running numbers on investment properties
3 Replies
Michael K.
Real Estate Broker from Chicago, IL
posted about 2 months ago
Hey Bigger Pockets Community! I want to hear everybody's thoughts about whether or not principle payments should be included when we calculate cash on cash return from an investment property? Are you currently including it? Why or why not? And what is everyone's favorite metric for assessing an invetment property's potential?
Cheers,
Mike
Joe Villeneuve
from Plymouth, MI
replied about 2 months ago
No. You are not receiving cash.
Jonathan R McLaughlin
Rental Property Investor from Boston, Massachusetts (MA)
replied about 2 months ago
@Michael K. It’s part of your overall return but not your cash return. As joe pointed out, it’s not cash.
Jonathan R McLaughlin
Rental Property Investor from Boston, Massachusetts (MA)
replied about 2 months ago
@Michael K. Or I should say, apart of the investments overall performance
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you