IRR is of course the ultimate measure of success, but it is impossible to know in advance what this is going to be unless you have some method of knowing what the property is going to be sold for, vacancy rates, future tax increases, etc. etc. While the IRR can be calculated once the deal is completed, it is essentially just a guess (hopefully an educated one!) before the property is sold, and should be referred to as anticipated IRR or estimated IRR.
ROI (Return on Investment)- Does the return on the total investment more than cover the time value of the money? Not just the cash I put in, which is generally zero, but all of the money required for the deal.
In other words, will the income cover interest on all my costs and all of the expenses (including vacancy, repairs, and maintenance), and still leave me with some profit or tax benefits to make it worth my effort? I never count on future appreciation to make a deal worthwhile.
Hi, I own one four-plex & 2 SFR, in paso Robles,CA
I am looking to 1031 exchage these properies
into somthing, larger & more profitable.
Thanks for any advice or input.
Hi, Thanks for the posting the info. that is why I joined
TCI to learn more from the savvy pros. I am newbie
to www.commerical.Looking for M.F.commerical 16 units or larger that will carry it-self & seller financing or well
carry to help me get into larger more profitable
building, I do not have much cash to put in except
the rental properties I have & I have excellent credit.
IRR is of course the ultimate measure of success, but it is impossible to know in advance what this is going to be unless you have some method of knowing what the property is going to be sold for, vacancy rates, future tax increases, etc. etc. While the IRR can be calculated once the deal is completed, it is essentially just a guess (hopefully an educated one!) before the property is sold, and should be referred to as anticipated IRR or estimated IRR.
Chris
ROI (Return on Investment)- Does the return on the total investment more than cover the time value of the money? Not just the cash I put in, which is generally zero, but all of the money required for the deal.
In other words, will the income cover interest on all my costs and all of the expenses (including vacancy, repairs, and maintenance), and still leave me with some profit or tax benefits to make it worth my effort? I never count on future appreciation to make a deal worthwhile.
Chris
Hi, I own one four-plex & 2 SFR, in paso Robles,CA
I am looking to 1031 exchage these properies
into somthing, larger & more profitable.
Thanks for any advice or input.
do what to go into other MF residential or are you open to commercial?
There are some great 1031/NNN property websites.
Hi, Thanks for the posting the info. that is why I joined
TCI to learn more from the savvy pros. I am newbie
to www.commerical.Looking for M.F.commerical 16 units or larger that will carry it-self & seller financing or well
carry to help me get into larger more profitable
building, I do not have much cash to put in except
the rental properties I have & I have excellent credit.
Are you leaning one way or another on this deal?
or is it an opportunity to buy it on the cheap?