Famous people say the darndest things!
Songs Music Lyrics
Lists of US Patents
Article Search
Most Recent Articles

Protecting America with Specialty Gases
by Bob Davis
in N/A
Free Radicals - Should I Be Concerned About Them?
by Paul Wallace
in N/A
Baby Shower Gift Ideas
by Criss White
in N/A
Advantages of an Online Site Builder
by Halstatt Pires
in N/A
Guide to Bad Credit Loans
by John Mussi
in N/A
What an Automated Web Site Can Do for Your Business
by Halstatt Pires
in N/A
5 unorthodox email subject tricks -500% more responses!
by S. Kumar
in World News
Email Marketing Manners 101: Clearing Your Inbox By Forwarding E...
by Joan Pasay
in N/A
How To Finance a New Kitchen
by John Mussi
in N/A
Credit Counseling Services Checklist
by Joel Walsh
in N/A
Six Things You Can Do to Protect Your Child's Hearing
by Susan Dunn, MA
in World News
"How To Get Fit And Slash Your Health Insurance Costs"
by Neil Stelling
in World News
Selling A Home – What Attachments Stay or Go?
by Raynor James
in N/A
Banking smart
by Jeff Lakie
in N/A
Tips for Buying Baby Gear
by Eric Koshinsky
in N/A
Creating A Search Engine Copywriting Plan
by Karon Thackston
in World News
Ways to heat your water
by John Thomson
in N/A
Personal Realtor Maketing Systems Make Good Business Systems
by Lanard Perry
in World News
COMPLETE WEB-SITE OPTIMIZATION FOR SEARCH ENGINES (part2)
by Pavel Lenshin
in World News
How to find hotels with a restaurant
by Liam Austin
in N/A
How to Create a Time Capsule Gift
by Nancy Wurtze
in World News
Life Is A Divine Game
by Halina Goldstein
in World News
Going Beyond Banner Advertising
by RM Blackledge
in N/A
Invest Wisely in Yourself and your Business
by Abe Cherian
in N/A
How to multiply your sale by attracting affiliates.
by Raamakant S.
in N/A
How to Write a Will
by John Mussi
in N/A
A Guide to Finding an Adverse Credit Homeowner Loan
by John Mussi
in N/A
Reverse Mortgage – Be Sure You Need It Before Applying For One
by Charles Essmeier
in N/A
Top Ways To Create Ideas For Your Next Highly Read Article
by Steve Searls
in N/A
Ten Fun Ways to Liven up Any Presentation
by Sandra Schrift
in World News
How Credit Works
by John Mussi
in N/A
An Overview of Getting a Homeowner Loan
by John Mussi
in N/A
How to Plan to Save
by John Mussi
in N/A
Stock Market Investments
by Charles M O'Melia
in N/A
What You Need to Know about Arthritis
by Rudy Silva
in N/A
Flexible Mortgage Tips
by John Mussi
in N/A
Ensure your hotel has a swimming pool
by Liam Austin
in N/A
7 Simple Weight Loss Feasting Tips for the Holiday Season
by Tracy Lee
in N/A
Borrow on a Budget: Getting the Cheapest Home Improvement Loans
by John Mussi
in N/A
How You Can Save Up to 50% or More on Your Next RV Rental Vacati...
by Dave Corby
in N/A
Discipline And Its Threats On the Net
by Irena Whitfield
in World News
Credit Repair Collection Agency
by Jonathan Cheong
in N/A
Don’t want another carpet sweeper this year for Christmas?
by Diana Ennen
in N/A
Business card design tips
by Mihai Rad
in N/A
The Wealthy Mindset
by Dinar P. Wiria-Atmadja
in N/A
Starting a Business (2 of 3)
by Michael Herman
in World News
The Missing Pound
by Silke Stahl
in World News
Eye Exercises - Boost The Power of Your Optic Muscles
by Charlie Cory
in N/A
Baby Shower Hostess Gifts
by Alli Ross
in N/A
4 Internet Marketing Techniques To Increase Your Sales
by Jeff Schuman
in World News
Setting your Online Business Up for Success!
by Charles & Susan Truett
in N/A
5 Steps to Remove Spyware for Free
by Rafael Nunez
in N/A
Easily Substitute Fats In Your Everyday Diet
by Gary Matthews
in N/A
Getting Your Best Deal on a Consolidation Loan
by John Mussi
in N/A
Supplemental Health Insurance: Changing Workplace, Changing Worl...
by Anna dorbyk
in N/A
Dealing With and Repairing Bad Credit
by John Mussi
in N/A
Spyware Protection - The Only Way To Safeguard Your Personal Inf...
by JoeBorges
in N/A
Developing a Mechanical Trading System Part 1
by Trading Systems
in N/A
How Refinancing Works
by John Mussi
in N/A
Business Success Tips
by BB Lee
in World News
Copywriting: Engage Prospects By Involving Their Senses
by Lisa Packer
in N/A
What are Secured Loans?
by John Mussi
in N/A
A Guide to Cheap Loans Online
by John Mussi
in N/A
Choosing a secured loan
by Jeff Lakie
in N/A
Home Equity – Is it Time to Cash Out and Move?
by Charles Essmeier
in N/A
Building Credit in Despair
by Jonathan Cheong
in N/A
Stock Market Retirement Investment Plan
by Charles M. O'Melia
in N/A
Find a Methodology and Minimize Investment Madness
by Ulli G. Niemann
in World News
Exposure compensation
by Jakob Jelling
in World News
Fly Fishing - In Search of the Chase
by Rick Chapo
in N/A
Contract Management Software: the Solution to the Problem of Coo...
by Joe Miller
in N/A
A Guide to Looking for Cheap Online Loans
by John Mussi
in N/A
TEST ARTICLE
by Geoff Carter
in World News
Auto Lemon Laws – About the Arbitration Process
by Charles Essmeier
in N/A
Men's killer Dating Mistake!
by Mick Jones
in N/A
Bad Credit Home Loans
by Ethan Hunter
in N/A
ABC Mesothelioma: Diagnosis of Mesothelioma Cancer
by Hector Milla
in N/A
Home Equity Loan – Still a Better Idea Than a 401(K) Loan
by Charles Essmeier
in N/A
7 Power Packed Tips To Increase Your Ezine Publishing Success
by Ken Hill
in World News
PumpUpTheDots - Reinventing the latest concept in Internet adver...
by Simon Wadsworth
in N/A
Option Spread Trading
by Steven T. Ng
in N/A
Build and Maintain Websites For Profit
by J. Stephen Pope
in World News
A Guide to Personal Loans
by John Mussi
in N/A
How Did Online Dating Become So Popular?
by Alex Fir
in N/A
Choosing the Right Business Card Design
by Jonathan Bowalsky
in N/A
Class-action lawsuits – Can they help you?
by Charles Essmeier
in N/A
Contact Lenses - the Latest Trends
by Tanya Turner
in N/A
Asthma triggers and asthma control techniques
by Mihai Rad
in N/A
Handicapping, Sportsbooks and Profits - OH MY!
by Thomas Straub
in N/A
Save money on furniture
by Jeff Lakie
in N/A
A Cuba Vacation
by Suzanne Morrison
in N/A
Network Marketing Do's and Don’ts
by Mike Law
in N/A
What Causes Allergies?
by Harold Miller
in N/A
Everything You Need To Know About Your Baby’s Teething Process
by keziah. engineer
in N/A
How To Conceal Your Website's "Fingerprint"
by Satyajeet Hattangadi
in N/A
Back To The Future Part One
by John Botscharow
in World News
How to check and change your air filter
by Jakob Jelling
in World News
Too Stuck to Pray
by Margaret Paul, Ph.D.
in World News
Distance Learning for Your MBA
by Jay Moncliff
in N/A
Life insurance - make sure your family is cared for
by Jakob Jelling
in World News
How to Budget
by John Mussi
in N/A
How to Get the Best Home Equity Loan
by John Mussi
in N/A
SPRING DECK PREP TIPS
by RL Fielding
in N/A
10 Ways for a WAHM to Have a Successful Day!
by Catherine Whitcher
in N/A
Spiritual Marketing
by Mark McCormack
in N/A
Get an Auto Loan the Smart Way
by Joel Walsh
in N/A
Flexible Mortgage Guide
by John Mussi
in N/A
From One Cup Coffee Makers to “Smart” Refrigerators:
by R. L. Fielding
in N/A
How Loan Decisions are Made
by John Mussi
in N/A
Five Ways to Increase Your Affiliate Sales
by John Purdy
in N/A
Flying in the Slow Lane
by Maureen Killoran
in World News
doug@titchmarsh.com
by Doug Titchmarsh
in N/A
Simple Steps To Improving Your Credit Report
by www.creditandyou.com
in N/A
Credit Repair Defaults
by Jonathan Cheong
in N/A
What are Personal Loans?
by John Mussi
in N/A
How to Set Appointments
by Jim Sinclair
in N/A
8 No-Fail Steps for E-Commerce Marketing
by Jamila White, "The E-Commerce Diva(tm)
in N/A
Bluegrass Portfolio Bullish On Latin America
by James Brumley
in N/A
Fish Creek House B&B - A Childhood Dream Come True
by Cid Bus
in N/A
10 Inside Secrets to Google Adwords - Part 2
by Ron Isaiah
in N/A
Bare Root Roses, what to look for when buying
by David G. Hallstrom, Sr.
in N/A
Guide to Personal Loans
by John Mussi
in N/A
Benefits of a Remortgage
by John Mussi
in N/A
Buying a Franchise
by John Mussi
in N/A
The Power Of I Don't Know
by Sheldon Gerard Ginsberg
in N/A
Voice Over IP, The Future is Now!
by Rick Parrott, MCP
in N/A
Taming The Book Proposal
by Jill Nagle
in N/A
Reversing Credit Repair
by Jonathan Cheong
in N/A
Cooperation Credit Repair
by Jonathan Cheong
in N/A
Those With The IN Win - 5 Steps to Get Connected
by Sam Manfer
in N/A
Guide to Bridging Loans
by John Mussi
in N/A
Your Exercise Program - 7 Things You Must Know To Succeed
by MarieBorges
in N/A
Announcing the Best Guarantee in a Long Term Care Policy
by Don Adams
in N/A
Building Credit History
by Jonathan Cheong
in N/A
Buying vs. Renting Your Trade Show Exhibit
by Gabe McIntosh
in N/A
Guide to Homeowner Loans
by John Mussi
in N/A
All Successful Entrepreneurs Have This
by John Baker
in World News
Are You Guilty of Stinkin’ Linkin’ Thinkin’?
by John Gergye
in N/A
A Guide to Getting a Bad Credit Remortgage
by John Mussi
in N/A
15 Tips to Bring More Traffic to Your Blog
by Kevin Oorlynck
in N/A
Cancer ? - Cervical Smears -
by Fritz Frei
in N/A
Using a free “loss leader” with Lists – Viral List Builders, Opt...
by Silke Stahl
in World News
Copywriter Fees Explained
by Joel Walsh
in N/A
Cash Out Refinance Mortgage Loans – Home Equity, 2nd Mortgage or...
by Carrie Reeder
in N/A
Diving in the Ustica Islands
by Jakob Jelling
in World News
Remove These Objections and Watch Your eBay Auctions Fly
by Brian McGregor
in N/A
Acne Program - Step 12 Change The Way You Think
by Rudy Silva
in N/A
The Magical Promise of Easy Money from an Internet Business
by Arthur
in N/A
The Conflict of Interest Game
by Ulli G. Niemann
in World News
How To Free-Up 10% to 15% of Your Income
by Michael G. Peterson
in N/A
Family Blog
by Brad Schneider
in N/A
10 Things You Should Expect From Your Website Copywriter
by Glenn Murray
in World News
How to find hotels with a dry cleaning service
by Liam Austin
in N/A
An Ideal home business Home Page
by Purva Mewar
in N/A
What is a Title Loan?
by John Mussi
in N/A
Do you have enough car insurance?
by Jeff Lakie
in N/A
Credit Card Debt Problems
by Ethan Hunter
in N/A
Fun Facts about Ice Cream
by Alli Ross
in N/A
7 Days to a Slim New You
by Janice Elizabeth Small
in N/A
"P" Your Way To Online Business Success With Great Profits!
by Claude Hopkins
in World News
Resistance to Celebrating
by Margaret Paul, Ph.D.
in World News
How to Analyze your Visitors to Improve your Web Site
by Michael Rock
in N/A
Guide to Business Loans
by John Mussi
in N/A
Start Again with Mortgage Refinancing
by Seymore Hennigan
in N/A
Credit Repair System
by Jonathan Cheong
in N/A
Improve Conversion Rates – Effective Content
by Halstatt Pires
in N/A
Become an Affiliate – Run an Online Business
by Halstatt Pires
in N/A
Dyann Woody Releases Debut Solo Album My Softer Side
by Dynamike Music
in World News
Do You Play Hit and Miss With Your Marketing?
by Denise Hall
in World News
52 Free Things to Do with Your Partner on Date Night
by Kim Olver
in N/A
Education and Outsourcing, 2 Ways to Improve your Business.
by Joop Liefaard
in World News
Tax Reform – Limit of Mortgage Tax Deduction
by Dan Lewis
in N/A
Help to get out of debt
by Janet Williams
in N/A
Dog Health Advice for 6 Common Emergencies
by Joel Walsh
in N/A
How to Choose a Good Domain Name.
by Raamakant S.
in N/A

Web	LinkGrinder.com

Top Breaking News
     Colombian Military Releases Video of Hostage Rescue by VOA News
     Former DRC Warlord Brought Before ICC Amid Doubts by Brent Latham
     Tanzania Devises Plan to Cope with Avian Flu Outbreak (Part 1/5) by Douglas Mpuga

Playing The Real Estate Rental Game

Copyright 2006 David Schneider
Real estate investing is a game.

By David Schneider Category: Finance---Investment

Submit your Articles Here!

Real estate investing is a game. To play it well you must understand the four financial benefits of real estate and how to maximize them. Those benefits are:

1. Cash flow 2. Equity build up (the payoff of your loan) 3. Tax benefits 4. Potential appreciation

In this article we are going to look at benefit number one.

Benefit number one ? Cash Flow (cash flow before tax).

Investing in real state is game of numbers. To play the game well you must understand how to manipulate the numbers to get the end results you want. The result being positive cash flow.

The formula to calculate the cash flow is listed below:

Gross Rental Income Minus: Vacancy Equals: Adjusted Gross Income Minus: Operating Expenses Equals: Net Operating Income Minus: Debt Service Payments Equals: Cash Flow Before Taxes

Here is an explanation of each of the factors in the formula above.

Gross rental income is the first number that you need. It includes all the rents and any other miscellaneous income from garage rents, laundry machines or vending machine. This number is that total income that we expect to get during the year.

Vacancy is a percentage of the gross rental income. It is based on that you won?t collect from of the rent that is expected because of bounced checks, evictions and vacant units during the year. This percentage will vary depending on the supply and demand for rental in your area. I commonly use a 5% vacancy factor when I don?t have any data to determine this. It is important to ALWAYS have a vacancy percentage. Many times the seller will tell you that they have had no vacancy. It is just not true because people?s lives change. They get divorced; lose their jobs and other changes. This causes them not to have the money to pay rent and creates vacancies.

Adjusted Gross Income is the actual money that you are going to receive.

Operating expense are all the costs that apply to the property each and every year other than the loan payments. It includes things like taxes, insurance, repairs, utilities that you pay and any other expenses.

Net Operating Income is that amount of money that the property produces after all operating expenses. This is the most important number because this is the number use to pay any loan payments. This is also the number that we use to determine the value of the property (more about this later).

Debt Service Payments is the amount of payments that you spend per year for any loan that you have on the property.

Cash Flow Before Tax is the amount of money that is left over after you have paid EVERYTHING. This is the amount of money that is you get to keep for your self.

Ok, now that I explained what all the numbers are, here are the keys to creating more cash flow. There is only basically two ways to do it. You have to get more income by increasing the rents and/or reducing vacancies losses or you need to reduce your operating expenses and /or your loan payments.

If you are buying, it obvious that by paying less for the property would mean that your loan should be less, therefore your loan payments should be less and should give you more cash flow.

It is extremely important that before you every buy any rental real estate that you look at the cash flow and you should run the numbers using three different scenarios. The best case where you rents are high and expenses are low, the worst-case scenario where the rents are low and the expenses are high and then a middle scenario. If the worst-case scenario still makes sense then the property should be a no-brainer and you should go ahead and buy.

------------------------------

Dave Schneider has been investing in real estate for over 25 years and is devoting to helping landlords make more money! For free mini e-course on how to use the number to make sure you never lose when you invest in real estate visit: http://www.rentalrealestatesoftware.com/track/article1.php

Return to Last Page

Homepage
Articles
DVD's
Member Login
Add Your Link
Edit Your Link
Contact Us
Image Hosting
Advertising
Disclaimer

Auctions - eBooks - Maps - Banner Links - Software - Weather - Music - Movies - TV

	Add Your Site · Terms Of Service · Privacy Policy

DISCLAIMER

	Follow The Bill is a free service that searches the Internet and indexes all files found so that you may search quickly and easily for shared files. These files are created and made available individually by users whose identity we are not aware of and who we have no control over. In essence we function like a search engine tool; these files ARE NOT STORED OR SERVED BY OUR NETWORK. We are not responsible for any materials obtained by using our service. We do not monitor any of the contents of these files. These files may contain viruses, illegal materials, materials inappropriate for minors, offensive files and the like. BY USING OUR SERVICE, YOU ASSUME FULL RESPONSIBILITY FOR DOWNLOADING THESE MATERIALS AND WILL INDEMNIFY US FOR ANY DAMAGES THAT MAY BE INCURRED. For More Specific Information VIEW OUR TERMS OF SERVICE. Thank you and Enjoy!

Playing The Real Estate Rental Game

Copyright 2006 David Schneider Real estate investing is a game.

Copyright 2006 David Schneider
Real estate investing is a game.