Looking for
Cash Flow?
Rent is only the beginning. Let’s look at what the property may actually produce after the costs of owning it are considered.
How Much Money Could the Property Actually Produce?
A property’s monthly rent can look attractive until vacancy, repairs, taxes, insurance, management and other operating costs are considered. Cash-flow analysis is about getting closer to the property’s real economics.
− Vacancy & Income Loss
− Operating Expenses
= Net Operating Income (NOI)
− Debt Service
= Estimated Cash Flow
Rent Isn’t Net Income.
Three Numbers Worth Understanding.
The property’s income after operating expenses, but before mortgage payments and certain other owner-specific costs.
One way to compare a property’s NOI with its value or purchase price, before considering the investor’s financing structure.
A way of comparing estimated annual pre-tax cash flow with the amount of cash invested in the property.
What Are You Expecting the Property to Do for You?
Are you looking for meaningful income today, modest cash flow with longer-term upside, or a property whose economics may improve over time? Your objective changes which opportunities deserve a closer look.
Have a Property in Mind?
Purchase price, financing, rents, vacancy, operating expenses and repairs can be organized into a clearer investment picture. Gabriel can help you evaluate the assumptions behind a property before you make a decision.
ANALYZE A PROPERTY WITH GABRIEL →Interactive Mia property analysis tools are being developed. For now, Gabriel can help organize and evaluate a specific opportunity.
A Spreadsheet Can Be Precise and Still Be Wrong.
The calculation is only as useful as the numbers going into it. Projected rent, vacancy, repairs, financing and operating costs should be supported by realistic assumptions rather than the numbers needed to make a deal look attractive.
Mia provides AI-assisted educational and exploratory information. Examples and formulas are simplified and are not financial, tax, legal or investment advice. Rental income, expenses, financing, property values and investment returns can change and are not guaranteed. Verify material assumptions and calculations with appropriate licensed professionals and official sources before making an investment decision.
Income Is Only Half of the Equation.
A stronger analysis considers what the property earns, what it costs to operate, how it is financed and what unexpected expenses could do to the investment.
See What’s Actually Available.
Use the live property search to identify potential opportunities. Then analyze the numbers rather than assuming a rental property will automatically produce positive cash flow.
SEARCH SAN DIEGO PROPERTIES →Let’s Run the Numbers.
Gabriel can help organize the income, expenses, financing assumptions and property condition so you can look at the opportunity more clearly.
ANALYZE A PROPERTY →