Successful Financial Future

  • The Secrets to Wealthy Investors’ Success

Wealthy people’s success isn’t magic—it’s about having access to the right information, making the right investments, and effectively managing their money. Investing in real estate and renting properties isn’t based on nostalgia or good memories; it’s grounded in sound property evaluations and careful number crunching.

Key Metrics We Use to Evaluate Properties:

  1. Determining the Net Operating Income (NOI):
    This helps us understand the income a property generates after deducting operating expenses but before taxes and interest.

  2. Calculating Operating Expenses:
    We meticulously calculate all costs associated with maintaining and operating the property to ensure accurate projections.

  3. Calculating the Capitalization Rate (Cap Rate):
    This key metric helps us determine the rate of return on a property investment, providing insight into its profitability.

At A.H. Morgan Investments, we always use the right approach, employing these critical methods to calculate the true value of a property.

  • Effective Gross Operating Income
    = Gross Rents Income – Vacancy

    • Capitalization Rate (Cap Rate)
      = Net Operating Income / Market Value
    • Estimated Market Value
      = Net Operating Income / Cap Rate
    • Rent to Cost Ratio
      = Monthly Rent / Purchase Price

We Are Helping People Improve Their Financial Health