A new article to help real estate investors and agents understand the Break-even Ratio has been posted on the ProAPOD website entitled “How to Compute Your Investment Property’s Break-Even Ratio”.
The article explains the meaning of the ratio, why lenders use it when they are considering to underwrite a loan for rental income property, and the formula. Here’s an excerpt:
“Anyone who has been around real estate investing for any length of time is undoubtedly familiar with the term, Break-even Ratio, yet may not have a clue what is and why it’s used. So it seemed like a good idea to explain it.
Break-Even Ratio (or BER) is commonly used by lenders when they’re considering to underwrite a loan…”
The article is free to read courtesy of ProAPOD Real Estate Investment Software.