Buying Rental Property? Do You Know About Discount Cash Flow Analysis

If you are about to purchase your first rental property, here are a few reasons you should run the numbers first, and especially perform discount cash flow analysis:

1. Going through an analysis process forces you to look at factors and risks which you may not have thought of on your own.
2. Discount cash flow analysis gives you a 'bottom line number' -- your projected profit from an investment. This tells you how much you can expect to earn if everything goes exactly as planned.
3. Professionals do it, and they do it for a reason. Be professional in your approach if you're serious about making money from your real estate investments.
4. When you're considering an investment property purchase, you should look at both best- and worst-case scenarios. This will give you a range of potential results. You're not going to be able to predict the future, but you can get a feel for the least and the most you can expect to make.  Know the upside as well as the downside to your investments.

Deal analysis of this nature used to be hard, or expensive, or both. You either had to be an accountant, or hire an accountant. It took time, and it was pricey. Lots of $$$. Who has the time or the money for that?

But now, there is Real Estate Genius-- powerful online real estate investment software which will run the numbers for you. Let the Genius do the heavy lifting. You'll just gather the facts, and plug in your assumptions. Visit us online at www.real-estate-genius.com to learn more.

Or, click here if you'd like to learn more about how to analyze a real estate investment.