
If you’re a multifamily investor in Long Beach, California, you know that real estate investing is all about creating future cash flow. To ensure you’re making the greatest possible returns on every deal, you need to understand the numbers that play a key role in the outcome of an investment. The right tools and guidance can help you compare available investment properties and determine which one best meets your income goals while minimizing investment risk.
Working with trusted family and friends or reaching out to professionals is wise as you start your new business venture as a real estate investor. Location and property management play a pivotal role in the success and health of your real estate holdings. When reviewing the books, you should understand that you’ll need to match their performance as a landlord to achieve the same results.
At OwnApts Multifamily Advisors, we understand that as a real estate investor, you must focus on earning the highest investment returns or ROI. We have a team of seasoned professionals who can guide you through the critical calculations every Long Beach real estate investor needs to know, including:
Cash Flow
Positive cash flow is the ultimate goal for any real estate investor. It’s the net income generated from your rental properties after covering all monthly expenses, and over time, the cash flow increases as the mortgage is paid down. Aside from being a source of steady income, rental properties can also provide security in retirement and protection against inflation. If you’re a real estate investor in Long Beach, the professional investors at OwnApts Multifamily Advisors can guide you through the calculations of potential income and expenses, helping you make informed decisions to maximize your cash flow. Our experts can help you find the best locations to ensure long-term value and higher returns while staying within your budget and leaving room for unexpected expenses. Trust OwnApts Multifamily Advisors to help you achieve your real estate investing goals and secure your financial future.
Cap Rate
Cap rate is a vital tool for smart real estate investors when looking to add properties to their portfolio. It helps compare properties and measure the expected rate of return based on the annual rental income. The ratio of the net operating income to the current market value determines the cap rate and helps investors distinguish good deals from overpriced ones. In Long Beach, professional investors at OwnApts Multifamily Advisors possess a wealth of experience and expertise in determining potential ROI or losses to expect when comparing properties for purchase. Our seasoned professionals will guide you through the crucial calculations every real estate investor in Long Beach needs to know, so you can make informed decisions and maximize your returns.
Cash on Cash Return
The cash-on-cash return formula is an important tool for real estate investors as it helps them assess the return on their invested cash. This calculation only takes into account the cash invested, not the total cost of the property. The ratio is determined by dividing the annual net operating income by the total cash investment. It’s one of the essential calculations every Long Beach real estate investor should know. Professional investors at OwnApts Multifamily Advisors can help you understand the results and guide you to the best investment property available in Long Beach.
At OwnApts Multifamily Advisors, we have a local full-service in-house team of industry specialists who work with an investor’s mindset, making real estate investing easy and efficient for you. We handle everything from locating investments and running the numbers to showing you the ropes of the real estate investment business all the way to the closing table. You can also rely on our highly regarded property management team to take on as many of the duties of a landlord as you like, from tenant screening to on-site management of large complexes. With OwnApts Multifamily Advisors, you’ll have access to all the pros you need to succeed. Call us at (562) 548-8147 to get started.