french property restoration

There are four main factors that indicate whether a rental property is a good business: the profit and loss account, it produces the situation, the available financing options and the market value of the property in relation to the purchase price.

You will receive the necessary information for determining the income a property produces, by the following questions. If you are the seller, try not to ask questions, in which the seller already has the answers to in his ad or issues where the answer is obvious.

* What is the asking price for the property?
* What is the gross scheduled rent for each unit per month?
* What are the yearly taxes?
* What is the ownership of the annual cost for the insurance?
* What utilities are covered by the landlord and what they yearly total?
* What are the annual lawn and snow removal?
* All other costs?
* Is the property with gas or electric heating?
* Are there washer and dryer connections in each unit or a tenant laundry?
* What products are on sale?
* If the currently open positions?
* How long have you been trying to sell the property?

After approval, the seller replies to the questionnaire, real estate, you can organize and analyze the information.

Gross Income: Add the planned or anticipated rents and all other expected revenues to the Gross Scheduled Income (GSI). Then subtract the vacancy of the seat or the vacancy to be expected from the current vacancy rate for the area to participate in the effective gross income (GEI).

Cost: Here the total operating expenses (OE) using all the expenses involved in the operation of the property not including debt service.

Net Operating Income: The Net Operating Income (NOI) is the difference between effective gross income and the recurring costs.

Debt Service: Debt Service (DS) is the total principal and interest payments on the mortgage or loan to purchase the property.

Cash Flow: The object or the Cash Flow Net Income (NI) is the net operating income less the total debt service (DS). This can be a positive or negative number

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