Learn about two very important metrics for income-producing investments, especial for multi-family and multi-unit properties.
- In this lecture we're going to talk about…a couple of concepts that really only apply…to income producing assets,…so rental properties would be one of them.…These concepts, the yield and the CAP rate,…doesn't really apply to fix and flips…because it has to do with the income…that a property produces.…Let's look at what they are.…Let's look at income properties first.…So, for an income property it may look something like this,…where you invest a certain amount of money…and then you collect some rent every year.…
Hopefully, they're growing, but in this example,…let's just say every year…you're collecting something consistent, okay?…The yield of an income property is basically the…rent in a given year divided by your total investment.…The yield can be different…depending on which years the rent that you're using;…the rent in year one may be a little bit lower…than the rent in year seven.…So, when you are using yields…to compare different rental income properties,…make sure you're comparing them apples to apples…
Note: This course uses data and example properties from the United States, but the concepts taught and tools provided are just as useful for any market.
- Determining if real estate investment is right for you
- Choosing a market and a property
- Using financing
- Strategies for first-time investors
- Real estate market cycles
- Valuing a property
- Analyzing your market
- How leverage impacts investments
- Real estate investment case studies
Skill Level Appropriate for all
Excel: Analyzing and Visualizing Cash Flowswith Curt Frye1h 16m Intermediate
Learning Real Estate Photographywith Scott Hargis3h 21m Beginner
Managing Your Personal Investmentswith Jane Barratt1h 31m Appropriate for all
Start here3m 29s
1. Case Study: Joe's First Investment
2. The Many Ways to Invest in Real Estate
3. Real Estate Market Cycles
4. How to Value a Property
5. Understanding Your Market
6. What Makes a Good Investment?
7. Understanding Leverage
8. Case Study: Rental Income Property Analysis
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