Comments for InvestmentPropertyCentral.org http://investmentpropertycentral.org Achieving financial success through real estate Thu, 26 Apr 2012 15:02:53 +0000 hourly 1 Comment on Internal Rate of Return (IRR) – Defined by Jeffrey King http://investmentpropertycentral.org/internal-rate-of-return-irr-defined/comment-page-1/#comment-396 Jeffrey King Thu, 26 Apr 2012 15:02:53 +0000 http://investmentpropertycentral.org/?p=525#comment-396 Calculating the paydown on the loan is generally done with Excel. I use their formula CUMPRINC(rate, nper, pv, start_period, end_period, type). This formula calculates the cumulatve principal paid on a loan balance between two periods. With respect to your 2nd question, when we calculate the internal rate of return, we must first create the income statement for the property. The income statement comprises of the income (rents), less expenses (management, taxes, insurance, vacancy, maintenance), less debt service. Note that the debt service (or loan payment) includes both the interest and principal payment. With investment properties, the entire loan payment is deductable. Let me know if this answers your question and thanks for the comment! Jeffrey King Calculating the paydown on the loan is generally done with Excel. I use their formula CUMPRINC(rate, nper, pv, start_period, end_period, type). This formula calculates the cumulatve principal paid on a loan balance between two periods. With respect to your 2nd question, when we calculate the internal rate of return, we must first create the income statement for the property. The income statement comprises of the income (rents), less expenses (management, taxes, insurance, vacancy, maintenance), less debt service. Note that the debt service (or loan payment) includes both the interest and principal payment. With investment properties, the entire loan payment is deductable. Let me know if this answers your question and thanks for the comment!
Jeffrey King

]]> Comment on Internal Rate of Return (IRR) – Defined by pushpak http://investmentpropertycentral.org/internal-rate-of-return-irr-defined/comment-page-1/#comment-395 pushpak Thu, 26 Apr 2012 06:03:13 +0000 http://investmentpropertycentral.org/?p=525#comment-395 Hi, How do you calculate reducing loan balance ($79,062.56)? and why dont you include interest paid rather in income stream. please advice Hi,

How do you calculate reducing loan balance ($79,062.56)? and why dont you include interest paid rather in income stream. please advice

]]> Comment on The Dark Side of Real Estate: Life Outside the Sweet Spot by The Dark Side of Real Estate - Not "Cheaper by the Dozen" | 104 - Red Flags http://investmentpropertycentral.org/the-dark-side-of-real-estate-life-outside-the-sweet-spot/comment-page-1/#comment-388 The Dark Side of Real Estate - Not "Cheaper by the Dozen" | 104 - Red Flags Fri, 02 Mar 2012 23:50:12 +0000 http://investmentpropertycentral.org/?p=872#comment-388 [...] This article is part two of our personal investment stories about  The Dark Side of Real Estate. [...] [...] This article is part two of our personal investment stories about  The Dark Side of Real Estate. [...]

]]> Comment on Where to Invest – Selecting an Investment Neighborhood by Christi Gilhoi http://investmentpropertycentral.org/selecting-an-investment-neighborhood/comment-page-1/#comment-367 Christi Gilhoi Mon, 12 Sep 2011 18:08:48 +0000 http://investmentpropertycentral.org/?p=556#comment-367 Thanks for your comment Mona. Insurance is a key factor in the process. Thanks for your comment Mona. Insurance is a key factor in the process.

]]> Comment on Where to Invest – Selecting an Investment Neighborhood by Mona http://investmentpropertycentral.org/selecting-an-investment-neighborhood/comment-page-1/#comment-366 Mona Wed, 07 Sep 2011 14:43:04 +0000 http://investmentpropertycentral.org/?p=556#comment-366 I agree, It is important to invest in a good neighbour hood, you can also get a good property insurance quote that way too as if you were investing in an area where crime rate is high your insurance quote will be much higher. So it definately makes a difference. I agree, It is important to invest in a good neighbour hood, you can also get a good property insurance quote that way too as if you were investing in an area where crime rate is high your insurance quote will be much higher. So it definately makes a difference.

]]> Comment on About Us by Kyra Pace http://investmentpropertycentral.org/about/comment-page-1/#comment-363 Kyra Pace Mon, 22 Aug 2011 01:53:39 +0000 http://investmentpropertycentral.org/?page_id=2#comment-363 :-) Just to let you know that I got an address to your website from :-> I encountered a link to this blog site from Themelis Cuiper's SocialGarden Biz case studies about branding & internet business - so you must be doing a wonderful job. :-) Just to let you know that I got an address to your website from :-> I encountered a link to this blog site from Themelis Cuiper's SocialGarden Biz case studies about branding & internet business - so you must be doing a wonderful job.

]]> Comment on The Evolution of a Property Management Company by How it all began: Smartphone (R)evvl-ution - Revvl Blog http://investmentpropertycentral.org/the-evolution-of-a-property-management-company/comment-page-1/#comment-361 How it all began: Smartphone (R)evvl-ution - Revvl Blog Thu, 18 Aug 2011 19:03:35 +0000 http://investmentpropertycentral.org/?p=348#comment-361 [...] Image credit goes to Investment Property Central  [...] [...] Image credit goes to Investment Property Central  [...]

]]> Comment on Through the Knot Hole – Navigating Current Financing Challenges by Through the Knot Hole – Navigating Current Financing Challenges | The 1031 Tax Exchangers http://investmentpropertycentral.org/through-the-knot-hole-navigating-current-financing-challenges/comment-page-1/#comment-349 Through the Knot Hole – Navigating Current Financing Challenges | The 1031 Tax Exchangers Sat, 30 Jul 2011 03:25:31 +0000 http://investmentpropertycentral.org/?p=977#comment-349 [...] Comments Feed [...] [...] Comments Feed [...]

]]> Comment on The Tax Advantages of Investment Real Estate (1 of 3) – Depreciation & Shielding Your Investment by The Tax Advantages of Investment Real Estate (2 of 3) – Capital Gains & Depreciation Tax | The 1031 Tax Exchangers http://investmentpropertycentral.org/shield-your-investment-the-tax-advantages-of-real-estate-1-of-3/comment-page-1/#comment-343 The Tax Advantages of Investment Real Estate (2 of 3) – Capital Gains & Depreciation Tax | The 1031 Tax Exchangers Sat, 14 May 2011 04:38:25 +0000 http://investmentpropertycentral.org/?p=621#comment-343 [...] the primary concentrate on tax advantages natural to investment property.  The last article, Part 1 from the series,  covered depreciation inside the existence in the investment.  Here, we are [...] [...] the primary concentrate on tax advantages natural to investment property.  The last article, Part 1 from the series,  covered depreciation inside the existence in the investment.  Here, we are [...]

]]> Comment on The Tax Advantages of Investment Real Estate (2 of 3) – Capital Gains & Depreciation Tax by The Tax Advantages of Investment Real Estate (3 of 3) – 1031 Exchanges | The 1031 Tax Exchangers http://investmentpropertycentral.org/capital-gains-and-depreciation-tax-the-tax-advantages-of-real-estate-2-of-3/comment-page-1/#comment-342 The Tax Advantages of Investment Real Estate (3 of 3) – 1031 Exchanges | The 1031 Tax Exchangers Sat, 14 May 2011 04:37:12 +0000 http://investmentpropertycentral.org/?p=648#comment-342 [...] Part 2: Capital Gains Depreciation [...] [...] Part 2: Capital Gains Depreciation [...]

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