Sharpen Your Pencil and Do the Math - Utilizing the Formulas of Real Estate Investing

Published: Nov. 5, 2012, 2 a.m.

An essential skill for every rental property investor big or small is knowing how to do accurate financial analysis. Without it, how do you know if a property is a good deal, how it compares to other properties; or whether it's a good time to buy, sell or refinance?\nThese are just some of the very important questions a prudent rental property investor needs to know how to find the answers to.\xa0 That's why we say \u201cDo the math and the math will tell you what to do!\u201d\nSo the topic of this episode is an overview of the 7 essential formulas of rental property financial analysis.\xa0 You'll learn what they are, why they're important and how to use them.\nSound scary?\xa0 Hey, it's only math.\xa0 And it\u2019s not as bad as getting into a property expecting positive cash flow and finding out you\u2019re really negative; or buying into an overheated market, or not getting out while the getting\u2019s good.\xa0 Good financial analysis can save you a LOT of heartache!\nSo listen in as The Real Estate Guys\u2122 teach you how to sharpen your pencil and do the math!\nThe Real Estate Guys\u2122 radio show provides real estate investing news, education, training and resources to help real estate investors succeed.\xa0 Learn more and subscribe to the free newsletter at www.realestateguysradio.com.