informative web site

Comments(10)

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  land019th February, 2003

  A quick note regarding the web site I suggested above. When the home page opens click on the fine print below that says, "financial analysis of properties". When the next page opens, use the drop down menu and click on financial analysis for the above referenced subject. Other good topics in drop down menu as well...

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  land019th February, 2003

  this is too embarrassing... I may never post again! The corrected website address is: www.cses.com. I am very sorry for the confusion!!

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  RepoMan9th February, 2003

  Great info!! I will be using it!
  Thanks for your post...all 3 of them. lol
  
  Happy Hunting
  Repoman

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  joel10th February, 2003

  Land,
  
  Thanks for the post.
  
  I don't want to embarass you more, but you can edit and delete your own posts by clicking on the 'Edit and Delete' link right below your post.

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  land0110th February, 2003

  Thanks Joel! It's no fun learning the hard way!!!!

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  DaveT10th February, 2003

  Quote:In trying to learn more about capitalization rates and net operating income, I found a good web site. I learned a lot in the financial analysis section, but haven't read/studied the rest of it yet. Jus
  land01,
  
  It is good to have a clear understanding of some of the terms used in financial analysis, and, even better to understand which calculations work best for a particular opportunity.
  
  Suggest that if you are only looking at single family residential rental property, the Debt Coverage Ratio is the only one that matters in your analysis.
  
  Capitalization Rates are more meaningful when you are looking at large multi-unit projects where comparable sales data is scarce.
  
  Gross Rent Multiplier is a quick and dirty yardstick for an initial screening tool, but should never replace a more detailed cash flow analysis for any property you may wish to purchase.
  
  All of these financial analysis tools are only meaningful for property you want to hold for income production.
  
  Hope this helps some.

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  land0111th February, 2003

  I really appreciate your responses Dave T!I have been using your 125% rule in my property analysis that you mentioned under the topic of "fair mkt. rent ". Now I also know, thanks to you, this principle is called, "Debt Coverage Ratio".Over 20 yrs. ago I appraised real estate & used to use the GRM as secondary means of documenting value. I will not rely on memory for formulas anymore!! Excuse the error!! Thanks again for sharing your great knowledge...I am learning something every day & enjoying this very much. Christina

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  DaveT11th February, 2003

  Do you have a spreadsheet program? I use MicroSoft Excel and it has all the financial functions I need to build a cash flow analysis spreadsheet.
  
  Send me an e-mail at jreynolds4@sc.rr.com. Put Cash Flow Analysis Spreadsheet in the subject line, and my reply will attach a demonstration copy of the spreadsheet I use for my long term rental investment analysis.[ Edited by DaveT on Date 02/11/2003 ]

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  j_owley27th February, 2005

  thanks

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  dominicd27th February, 2005

  FYI.....this is a fee based site. $44.95/month