Ultimate Guides

Learn what you need to know to find success in real estate investing! Here, the Real Estate Financial Planner™ team has collected all our Ultimate Guides so you can explore everything from investment strategies to financing to rental properties. Dive into the topics that have been holding you back so you can make informed choices, take action, and make your real estate investment goal into a reality.

Ultimate Guide to Mortgage Payments for Rental Properties

If you’re looking to learn more about mortgage payments with an emphasis on mortgage payments for rental properties, then check out our Ultimate Guide to Mortgage Payments for Rental Properties. If a mortgage payment is on an amortizing loan (a loan that pays off after a certain period of time like a 15-year or 30-year mortgage) then you will want to use an amortization table, excel, google or a business calculator that does amortization calculations to calculate what the payment is. For example, in Excel the formula is: Mortgage Payment = PMT(6.5%/12,360,400000,0,0) Where: PMT is the forumal in Excel .0065 … Read more

The Ultimate Guide to Other Income on Rental Properties

If you’re looking to learn more about income other than rent on rental properties, then check out our Ultimate Guide to Other Income on Rental Properties. Other income is income received on rental properties for things other than the primary rent. Some common examples include: On-site laundry Pet rent Storage unit rent Garage unit rent RV parking rent Upgrade rent (fee for installing something that you wouldn’t have otherwise installed on a property upon the request of the tenant) Utilities bill-back Pool/club house access How to Increase Income on Rental Properties While the following video is not exclusively about how … Read more

The Ultimate Guide to Rent on Rental Properties

If you’re looking to learn more about rent on rental properties, then check out our Ultimate Guide to Rent on Rental Properties. Rent is income received from renters, tenants and/or tenant-buyers on rental properties. How to Increase Rent on Rental Properties If you want to improve cash flow on your rental properties, then increasing rent is one strategy you might want to consider implementing. Watch our special workshop on how to improve cash flow to learn the strategies for improving cash flow including how to increase rents. How to Increase Rent Collected on Rental Properties Increasing the amount of rent … Read more

The Ultimate Guide to Gross Potential Income on Rental Properties

If you’re looking to learn more about Gross Potential Income (also abbreviated as GPI) for rental properties, then check out our Ultimate Guide to Gross Potential Income on Rental Properties. Gross Potential Income = Rent + Other Income GPI is defined as the sum of all the rent and other income sources on a property. It is the most the property could potentially earn before any expenses or vacancies. Calculating Gross Potential Income The following walks you through calculating Gross Potential Income on a rental property. Secondary Input Gross Potential Income Secondary is considered a secondary input in the Hierarchy … Read more

The Ultimate Guide to Operating Expenses on Rental Properties

If you’re looking to learn more about Operating Expenses (also abbreviated as OpEx) for rental properties then check out our Ultimate Guide to Operating Expenses on Rental Properties. Operating Expenses = Taxes + Insurance + HOA + Utilities + Maintenance + Management + Other Expenses OpEx is defined as the sum of: Taxes Insurance HOA Utilities Maintenance Management Other Expenses We are specifically excluding all financing as that is not considered part of Operating Expenses on a rental property. Calculating Operating Expenses The following walks you through calculating Operating Expenses on a rental property.

Cash Flow

Ep 5 - Andrea - Total Cash Flow - Inflation Adjusted

What is cash flow for rental properties? Why is it important? How is it calculated? And cash flow reports for your investments. That’s what we’ll cover here. First, what is cash flow for rental properties? Cash flow is the money generated from your rentals after you account for all the income from the property and subtract all the expenses for the property. Income from your property might include: Rent from properties Option fees on properties Additional mid-month payments Utility bill back Income from onsite amenities like laundry or internet Appliance rent IMPORTANT NOTE: We do not typically consider Cash Flow … Read more

The Ultimate Guide to Cash on Cash Return on Investment

Welcome to the Ultimate Guide to Cash on Cash Return on Investment for real estate investors (also known as “Cash on Cash ROI”). In this guide, we will start by discussing what the basic definition of cash on cash return on investment is and then move on to much more advanced and nuanced topics related to cash on cash. Cash on Cash Return on Investment = (Net Operating Income – Mortgage Payments) ÷ Purchase Price Cash on Cash Return on Investment is defined as the Net Operating Income (often abbreviated as NOI) minus all Mortgage Payments divided by the Purchase … Read more

The Ultimate Guide to Cap Rate for Real Estate Investors

Welcome to the Ultimate Guide to Cap Rate for Real Estate Investors (also known as “capitalization rate”). In this guide, we will start by discussing what the basic definition of cap rate is and then move on to much more advanced and nuanced topics related to cap rates. Cap Rate = Net Operating Income ÷ Purchase Price Cap rate is defined as the Net Operating Income (often abbreviated as NOI) divided by the Purchase Price. In The World’s Greatest Real Estate Deal Analysis Spreadsheet™ cap rate is calculated for you. What’s a Good Cap Rate for Real Estate Investors? Cap … Read more

The Ultimate Guide to CapEx on Rental Property

Maintenance and CapEx Estimator for Rental Property - Advanced

CapEx on rental property (also called Capital Expenses) are expenses to replace parts of the property that wear out over time. What’s the difference between CapEx and maintenance? From a tax perspective, capex of less than the “safe harbor” limit of $2,500 per invoice or item can be written off as maintenance on the property in the year they were taken. Some expenses over the $2,500 safe harbor amount will need to be capitalized over the lifespan of the item. Talk to your CPA or read the Internal Revenue Code for more detailed information on the tax treatment of capex. … Read more

The Ultimate Guide to Rent Comps

How do you know what a property will rent for? Rent comps… that’s how. Find out how to determine rent comps and interpret them to determine what a property is likely to rent for in this special one-time-only class taught by James on February 3, 2021. Below you’ll find an outline of what was taught in the class. But, first… Warning I don’t do my own property management I do not typically do my own rent comps… I typically call my property manager Rent is not an exact number and determining fair market rent is NOT an exact science We … Read more