Tag Archive for ‘GOI’

Show Me the Money – Six Common Cash Flow Misrepresentations

We know we should perform due diligence before making any investment. But often people don’t know what they don’t know. This is especially true when calculating cash flow. Here are six key areas to understand and clarify before considering any real estate investment purchase.

Creating an Income Statement for an Investment Property

Creating an accurate profit and loss statement for an income property is a critical step in the due diligence process of analyzing any investment property.

This video shows how to create an income statement to analyze the financial performance of an investment property.

Evaluating Maintenance Costs for Investment Property

I was asked an interesting question the other day by an investor who was evaluating a single family home for investment purposes. He was planning on to hold the property for approximately 20 years. He’d evaluated the property using a 5% annual maintenance reserve and was wondering if he should raise his maintenance reserves to 10% to cover all the maintenance issues he felt he was going to face during a longer term hold. In other words, does the maintenance rate need to increase, the longer one holds the property?

The Truth about Cash Flow

We all have seen extravagant claims of thousands of dollars in cash flow advertised by various Get Rich Quick real estate investment schemes. Positive cash flow is always an attractive advertisement but if you look closely, many of these claims are false.