ProAPOD posted a new article to help real estate investors and agents understand the Break-even Ratio. The article is entitled, “How to Compute Your Investment Property’s Break-Even Ratio”.
The ratio’s meaning, why lenders use it when considering to underwrite a loan for rental income property, and the formula are all included.
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…”
So You Know
The article is free to read courtesy of ProAPOD Real Estate Investment Software.