Читать книгу Commercial Real Estate Investing For Dummies - Peter Harris - Страница 52

The dictionary definition of the word analysis is “a separation of the whole into its component parts.” So, during this deep dive we break down any property analysis into its component parts:

 Income

 Expense

 Debt

That’s it. We take a look at the income information. Then we take a look at the expenses. And finally, we add a loan or mortgage to the overall picture. We combine them to come to a conclusion as to whether this deal makes money. Analysis made simple.

The size or complexity of the deal doesn’t matter. Separate the deal into its three component parts:

 Analyze and compile the income part

 Analyze and compile the expense part

 Analyze and compile the debt part

Any deal can be broken up into these parts. When you have these parts, you can calculate the net operating income, cash flow, cash-on-cash return, and cap rate. It’s easy-peasy once you've done it a few times!