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Business & Economics
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Millions mistake their return on investment for rental properties. Event Launch Before you invest in your first rental property or your tenth, you must know how to calculate return on investment for rental property the proper way, most have been calculating it in a way that can make them very vulnerable to the economic shifts. "After buying hundreds of properties for myself and thousands of houses for my investors, how to calculate return on investment for rental property is very simple. I look at the IRR, Internal Rate of Return. I can only look at the entire picture when I can see the entire picture," says Adiel Gorel owner of International Capital Group. You must know exactly how to calculate return on investment for rental properties. The consistency of good single-family rental properties in good areas, with a fixed-rate mortgage, determines for Gorel and his thousands of investors exactly, what is a good return on investment for rental property. So what happens when you buy bad properties because you think cash flow is the only return? You're all about that initial cash flow, so you're buying worse properties in worse locations, in worse conditions. You're left wondering, what is a good return on investment for rental property of that caliber? The results are always very predictable: You get worse tenants. More headaches for less money! And all of a sudden, even the hallowed cash flow is worse versus the boring, beautiful property that brings lower "To begin with" cash flow but constant cash flow, more predictable cash flow. Overall higher cash flow! I'm not even talking about the rates of return or the rate of growth of white hairs on your head! When you buy nice properties, things tend to go smoothly. "For me, return on investment is the internal rate of return, including absolutely everything-how much you bought it for, how much you sold it for, and the cash flow in the middle. That is the true measure of what is a good return on investment for rental property." Says Adiel Gorel, owner of International Capital Group. Contact Us At: https://icgre.com
