Capitalization rates (or cap rates, as they are more commonly called) are one of the most popular returns associated with real estate investing. As such, it’s not uncommon for a cap rate to appear in a real estate analysis inside… Continue Reading
As you know, one of the great challenges facing real estate investors is the ability to invest their money in rental properties that make them a profitable return, and at the very least won’t lose them money. To cope with… Continue Reading
The objective behind any real estate investment is the cash flows produced by the property. Ask any rental income property owner: “Cash is king” when it comes to making investment decisions for both profit and rate of return. Fair enough.… Continue Reading
Cost recovery, also commonly known as depreciation, is tax concept implemented by the Internal Revenue Service that is roughly defined by the tax code as a loss in value to a property over time as the property is being used.… Continue Reading
Depreciation recapture on rental property concerns a tax provision on capital gains due to depreciation commonly faced by real estate investors selling their rental income property. In essence, depreciation recapture is the way the Internal Revenue Service is able to… Continue Reading
Real estate investors will typically rent out commercial space by the square foot. So the measurement of commercial space is, of course, important to investors. But unlike the calculations one would typically make to derive the square footage for most… Continue Reading