How to Use the Investment Property Valuation Calculator: Step Six

investment property valuation calculator

Las week, myNOI covered the first five steps of the Investment Property Valuation Calculator (IPV). In the sixth step, investors will examine the cash flow of their property. It’s a short step that asks buyers to enter or estimate the average percentage growth of their income and expenses in order to help you better understand the long-term health of your property.

Step 6:

How to Use the Investment Property Valuation Calculator

Almost there! 

How to Use the Investment Property Valuation Calculator

Step 6 is the final section of the Investment Property Valuation Calculator before your ten-year report is calculated. In this phase, we’ll focus on the estimated annual growth of your income and expenses.

investment property valuation calculator

As time goes on, it’s likely the income and expenses your building generates will grow. To ensure you receive an accurate ten-year forecast, it’s necessary to know how much each will be growing by. Enter the best estimation of growth you have into the proper boxes. If you’re unsure of what the rate may look like, contact a local broker and ask for the numbers on similar properties in the same sector and area.

The Cap Rate at Sale box will automatically populate itself based on the information you’ve given in previous sections. If you need a reminder of what cap rate is, read our article.

When you’ve entered all the values you can, hit “Go to next step” to see your ten-year property forecast report.

investment property valuation calculator

Come back tomorrow when we detail the final step of the Investment Property Valuation Calculator!

MyNOI connects investors with the knowledge they need to make smart decisions and the right brokers to reach their goals. As a team we gather & write timely and salient articles for you to develop your expertise as a commercial real estate investor and broker.

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