How To Evaluate A Rental Property Including 7 Common Mistakes To Avoid

Owning rental property is a great way to build generational wealth and diversify your income-producing assets.

You must pick the right property and manage it well to succeed as an investor.

Real Estate Investor Metrics To Evaluate A Rental Property Investment

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Return on Investment (ROI) You can use ROI to compute the return on investment across various properties with various values.

The price-to-rent ratio is a metric that compares median home prices and rents in a given market.

Price to  Rent Ratio

The One Percent Rule Many experienced investors use a 1% rule of thumb to evaluate rental property investment.

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The 50% Rule In Real Estate

If a rental property generates $50,000 in gross rents each year, you should expect that $25,000 of that will go towards operating expenses, excluding the mortgage payment.

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