Part 6/11:
Determining the potential rental income for a property is essential. From there, I calculated various expenses, beginning with the mortgage payment. Calculators from sites like Bankrate helped me ascertain monthly payments based on the anticipated down payment and interest rates. Other costs included property management fees, insurance, and maintenance; aspects I had to account for in order to confirm whether the investment would generate a positive cash flow.
Using a systematic approach, I could assess the viability of each property effectively. Eventually, I developed a spreadsheet model to streamline this process and calculate the yield. Higher yield percentages ultimately indicate a more sound investment.