Category: rental-property

3 Ways To Value a Rental Property in Madison

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If you want to invest in rental real estate in Madison then one of the first things you’ll need to do is determine the value of the property. After all, how else will you know if it’s the right investment for you? In this blog post, we’ll share with you the 3 ways to value … Continued

How Much Cash Flow Do You Need For A Rental To Make Sense in WI?

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If you’re thinking about investing in a rental property, you might be weighing the costs and potential income. If so, you’re probably wondering: “How much cash flow do you need for a rental to make sense in WI?” This is a great question, and the answer might surprise you… Cash flow. It’s the reason why … Continued

4 Costs Associated With Rental Property in Madison

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If you’re thinking about investing in rental property, you’re probably doing your due diligence to make sure it’s right for you. Likely, one step in that due diligence is figuring out what expenses you’ll pay. Smart! To help you, we’ve created this list of 4 costs associated with rental property in Madison… When it comes … Continued

What Is Net Operating Income?

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Net Operating Income (NOI) is an important figure to know when purchasing income property.  It is simply gross annual rental income minus expenses (GROSS ANNUAL RENTAL INCOME – EXPENSES).  What can sometimes not be so simple is defining what qualifies as an “expense.”  Here is a list that you can use to define your expenses: … Continued

What Is Cap Rate?

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To value apartment buildings, many investors use the direct capitalization technique.  While it is mainly used for commercial real estate, it can also be used on 2-4 unit properties.  The formula is this: V = NOI / R V = VALUE NOI = NET OPERATING INCOME R = CAP RATE The Capitalization Rate (Cap Rate) … Continued

What Is Cash-On-Cash Return?

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When purchasing income property, there are many ways of looking at it to see if it is a good investment.  It’s probably a good idea to look at more than just one formula before deciding to purchase a property.  One formula you should at least take a look at is the Cash on Cash Return.  … Continued

What Makes a Good Rental Property in Madison?

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If you’re thinking about investing in rental property in Madison or anywhere in the 53704 zip code area you might be wondering what makes a good rental property in Madison. We’ll share with you 3 of the factors to see if rental properties are right for you… Rental properties can be a great investment. From … Continued