Property Evaluator

There are three financial measures of return we use to evaluate the financial performance of an investment property. The three measures we utilize are the Cash on Cash Return, the Capitalization Rate (Cap Rate) and the Equity Accumulation Measure. The Cash on Cash Return takes the Effective Net Cash Flow and divides it by the Total Cash Required. The Cap Rate is calculated by taking the Net Operating Income and dividing it by the Purchase Price. Due to the fact that the properties are fully leased at closing, there is no vacancy in the year one calculations. We have built a model to quickly calculate these returns for you and to allow you to modify various assumptions in order to test the impact on the returns.

Below is an example of a property we have recently sold in the Atlanta Metropolitan market and the assumptions we used to calculate the returns. The model is available as a tab under each investment property.