How to Analyze Real Estate Rental Properties: Capitalization Rate Explained

Thanks for this video. Very informative

Long term you're going to want to measure in inflation. Plan for block expenses - save for replacement of major items like repaving, boiler, roof, painting, etc.

Very good. Clear explanations. I thank you

The best video I’ve come across! Thank you!

Thx for using the white board to explain things, much appreciated!👍

beautiful explanation .......grt

Great video!! Thanks 💯

How are you comparing properties on the market?

What's the formula for figuring out cap rate for a neighborhood? Do we add the most recent sales and then do we compare it to the purchase price of the new house?

It is excellent information !! GOD Bless you🙏🙏🙏🙏

If i invest in a daycare center and be the NNN landlord only and not participant i the daycare operation. The NOI here is the NOI of the daycare business or the landlord’s NOI (I.e. pretty much just rent amount) ?

Love the video content! Great job explaining the material, which made it easy to grasp and understand. I am a newbie to real estate investing, I haven't acquired any investment properties at the time in my real estate career, but I am very excited and know that my success is inevitable, reason being is that I really love real estate and most of all I love numbers. I feel that I have awakened my purpose in life. God Bless!

I'll be investing in Michigan initially & then out of state investing eventually... Multifamily.

This is gold

🤓cool

Great video, simple explanation, unlike some investors who click bait people. Thanks and keep up the great work!

Great. Teacher Or mentor Is a man who can touch your mind nice details scenario.

Excellent video, enjoyed the easy explanations and TRIMUP

Is it bad idea to buy 1bed1bath 4unit? Please advice. Thanks :)

Great info , I am subscribed. Will look up your office

How do you find the cap rate for a market?

Great video. How does the mortgage cost fit into valuation and cap rate? You specifically leave it out for NOI..

Wow your video is the best on the Internet. I have zero experience in real estate but I am looking to learn more about it. So far I can follow everything you are explaining. Thank you for sharing your knowledge.

What are the other 5 metrics.?

Hard to find anything over 5% cap rates for 2 or 3 family homes near big cities these days. Prices still too high and rent recession is due to happen as employment is at peak in 2023

There are no cap rate comps for 4plexes. They are valued by the more accurate sales comparison method.

Thank you for the explanation but it sounds quite unrealistic in Southern California. Because properties are overpriced out there. It's almost impossible.

The operating expenses typically include things like property taxes, insurance, maintenance and repairs, utilities, and any other expenses related to the operation and maintenance of the property. These expenses do not include mortgage payments or other financing costs, as those are considered separate from the property's operating income and expenses.

While payroll or salaries for any employees are an expense associated with the operation of the property, they are usually not included in the calculation of NOI. However, if the property has an on-site manager or staff whose salaries are directly related to the operation of the property, those expenses may be included in the calculation of operating expenses for the property.

Thank you for making it easy to understand!

Does the same formula apply when wholesaling apartments?

Excellent video as always. When I choose to invest in California I'll certainly be contacting you!

Great explanation, thank you!

Your videos deserve a lot more views I think they will grow in the near future

Valuable content can't wait to buy my first property!