True Cash Flow to Value Apartment &
Multifamily Investments
http://www.
karenhanover.
com
Successful apartment & multifamily investors are well aware of the
importance of cash flow.
It s not just the great monthly bank deposits.
Cash flow, and the...
More
True Cash Flow to Value Apartment &
Multifamily Investments
http://www.
karenhanover.
com
Successful apartment & multifamily investors are well aware of the
importance of cash flow.
It s not just the great monthly bank deposits.
Cash flow, and the resultant cap rate and DSCR (Debt Service Coverage
Ratio) determine whether a lender will originate a mortgage, and for how
much.
Cash flow is critical in due diligence at purchase, and the pricesetter at sale time.
So, it s pretty important to catch any problems with
cash flow, and to recognize items that can be improved or omitted in
order to improve cash flow.
Whether it s something that will allow an increase in rents, or an expense
item that can be reduced or eliminated, cash flow will improve, cap rate
will go up, and value is greater.
The trick, whether buying or selling, is
to get to the root of all expenses, and to analyze income for ways to improve it.
Particularly
when doing due diligence for a purchase, getting as much info
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