For investors who wish to hold on to a rental income property indefinitely, the analysis requires the use of the terminal value formula.
- Now a lot of the examples we've gone over…and the examples we're going to go over later…makes an assumption that you're going to sell the investment…to realize all of the returns in the investment,…but what happens if you don't intend to sell it?…What happens if you just want to purchase it…and hold onto it for as long as you can,…keep collecting rents from this investment?…How would we account for that in our investment analysis?…Well, we're going to take a look at that case right here.…So if you are thinking about holding a property,…then we have to do a special treatment for the analysis…because we're no longer going to have the sale…where you're going to have the profits at the sale…to generate this huge cash flow at the end.…
So one of the ways we can do that,…and if we look at what this kind of scenario looks like,…it looks like something like this, right?…You invest some money.…You're getting some returns every year.…Hopefully it's growing, but in this example,…we'll just say that you're collecting some of the rents…
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 Intermediate
Managing Your Personal Investmentswith Jane Barratt1h 31m Intermediate
Learning Real Estate Photographywith Scott Hargis3h 21m Beginner
Excel: Analyzing and Visualizing Cash Flowswith Curt Frye1h 16m Intermediate
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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