What Every Real Estate Investor Needs to Know about Cash Flow... And 36 Other Key Financial Measures

Real estate financial calculations made easy

Every real estate investor needs to know how to calculate cash flow, long-term gain, net operating income, and a few other basic financial formulas. What Every Real Estate Investor Needs to Know About Cash Flow . . . is a guide to the 36 most essential calculations that answer such crucial questions as "What is this building really worth today?" "What kind of cash flow can I expect?" "Is this property a good investment?" and "How do I calculate my return?" For beginning investors, real estate veterans, commercial brokers, and sellers as well as buyers, this handy reference is a must-have for anyone who wants to make sound decisions based on accurate calculations of:

  • Discounted cash flow
  • Cash-on-cash return
  • Net operating income
  • Capitalization rate
  • Gross rent multiplier
  • Net present value
  • Payback period
  • Mortgage amortization
  • And many more

Reviews from Goodreads.com

Write a review (you'll need to sign in to your Goodreads account or sign up) (showing 1-9 of 12)
By Cody (Chicago, IL) · ★★★★☆ · April 14, 2015
Why did I give this 4 stars? Because Part 1, "How To Analyze a Potential Real Estate Deal", was fantastic -- it gets 5 stars. However, Part 2, "37 Calculations Every Real Estate Investor Needs To Know", only gets 3 stars.

The book opens by presenting a fairly comprehensive framework for measuring... ...more
By Matt (Honolulu, HI) · ★★★★★ · April 13, 2014
Should I buy it or not? Since buying property is likely the largest purchase that most people ever make, how can you afford not to get educated? If you are buying for investment purposes, this book will give you the tools to analyze your return on investment. Of course, ultimately you are forced... ...more
By Leanne (Johannesburg, South Africa) · ★★★☆☆ · February 11, 2015
This is a very specific kind of book for a very specific kind of reader. It came highly recommended from a community of real estate investors, though I admit to not grasping many of the calculations in it. I think you have to work daily with financial spreadsheets to be able to appreciate the adv... ...more
By Richie (Miami Beach, FL) · ★★★★★ · March 20, 2008
Boring as all hell unless you're a math junkie. However, it contains great formulas for real estate investors. I keep it on hand as a reference manual. ...more
By Chris (Cambridge, MA) · ★★★★☆ · February 26, 2014
Useful introduction to financial concepts and handy reference material for various profitability and expense metrics. ...more
By André (The United States) · ★★★★★ · January 29, 2015
Excellent book, extremely thorough! ...more
By Douglas (Rosemead, CA) · ★★★★★ · September 14, 2006
A great book about reading and understanding the P/L or operating statements of income producing properties. Its great to read to master the fundamentals. ...more
By Paul (Teaneck, NJ) · ★★★★☆ · August 31, 2010
...will be reading it again as I put the principals to use. ...more
By Maria (Fajardo, PR, Puerto Rico) · ★★★☆☆ · March 08, 2013
Something. ...more