1 Bozeman Real Estate Benchmarks
Deb Lawlor edited this page 5 days ago

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There are many real estate financial indicators for Bozeman. Benchmarks that provide the most value for Bozeman Real Estate Investing (especially for income producing real estate investments) are:
styleproperty.co.nz
Gross Rent Multiplier: Calculates the market value of the property. Cash On Cash Return: Measures the return on cash invested. Profitability Index: Measures the cost-benefit for the property investment. Internal Rate Of Return: Measures the financial efficiency and desirability of the investment property. Debt Coverage Ratio: Finds out whether the property generates enough money to cover the debt. Cash Break Even Ratio: Estimates how vulnerable a property is to defaulting on its debt should rental income decline. Loan-to-value Ratio: Calculates the ratio between the loan balance and the market value of a property expressed as a percentage. Capitalization Rate: Measures the earning ability of an income-producing property. Net Cash Flow: Calculates the net cash flow of the property after expenses.

Gross Rent Multiplier

Gross Rent Multiplier (GRM) is the ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, and utilities