Here’s a scenario: You just closed on an awesome investment property and you eagerly share the big news with your friends.
“What’s the ROI [return on investment]?” they ask.
“It’s amazing!” you say. “It’s …”
Then it hits you. You’re not sure how to answer the question, because there are a number of possible answers.
Are they talking about capitalization rate? Cash-on-cash return? Internal rate of return? Cash flow? Appreciation?
Every investor has their own understanding of what an "amazing" ROI is. In this article, we’ll look at defining your investment goals (namely, cash flow vs. appreciation) and run through the primary formulas for calculating rental property ROI.
Check out the full article I wrote that was published on Roofstock!
Want to know the #1 question I get asked?
I'll tell you. It's...
"Why in the WORLD do you buy houses in Indianapolis?"
Believe me, I understand why that question pops up all the time. Living in the San Francisco Bay Area and buying property over 2,000 miles away from home isn't the typical investing strategy. On the surface, it probably seems crazy. And, maybe it is.
BUT, I'm sold on the city of Indianapolis. And aparently, many of you agree with me as well...having lost out on 4 deals this past week! Ahhhh the frustration!
Anyways, I wrote an article for Roofstock: 10 Reasons I'll Buy More Rental Properties in Indianapolis.
Check it out, give it a read, and let me know what you think about Indianapolis!
After you read that article, take a look at the Indianapolis market overview below!
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