Positive Cash Flow
The amount of money that a property generates after all expenses have been paid, including the mortgage payment
Negative Cash Flow
The property does not generate sufficient income to meet the monthly expenses
Managing the property for maximum performance and cash flow
Market Vacancy Rate
The overall vacancy rate for the entire market or submarket based on a survey of properties within the geographic area
Market Average Price per Unit
Multi-family units are typically analyzed on a per unit cost basis. Thus average price per unit the sales price divided by the number of units.
Gross Rent Multiplier
Sales price divided by gross income. This is a market pricing indicator.
Net operating income divided by sales price. This would be your return if you paid cash in full for your building. This is also a market indicator.
What is a 1031?
(Tax deferred exchange) Allows a seller to defer capital gains tax from a property’s sale by acquiring a replacement property.