Residential Investment Properties

How do investors compare the incomparable?  There are objective measures and subjective measures.  While it is useful to use objective standards, as will appraisers for your bank loan, to help you make decisions, the subjective standard, should not be discounted. 

There are five basic methods of numeric valuation of residential investment properties. 

  • Price Per Unit: Price divided by the number of units equals Price Per Unit 
  • Price Per Square Foot: Price divided by the number of square feet equals Price per Square Foot
  •  Gross Rent Multiplier:  Price divided by Gross Income equals Groos Rents Multiplier
  • Capitalization Rate: Net Operating Income divided by the Price equals the CAP Rate
  • Cash-on-Cash:  Cash flow before taxes divided by cash invested equals Cash-on-Cash

There is one critical subjective standard for investment properties:

Do I want to own this property?

 

 

 

 

REO-Bank Owned Properties Salem Metro Area

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The data relating to real estate for sale on this website come in part from the Broker reciprocity program of the WVMLS and . Real estate listings held by other than are marked with the Broker reciprocity logo and detailed information about these properties includes the names of the listing brokers. Listing data is copyright of WVMLS. Some properties which appear for sale on this site may subsequently have sold or may no longer be available. All information provided is deemed reliable but is not guaranteed and should be independently verified.