Loretta A. Steele's (lasteele) Blog

Why should you be concerned about the break-even ratio of an income producing property? If you know that the cash flow coming in meets or exceeds the cash flow going out, what else should you know? Ratios, percentages and math, are they really necessary? Which answer would you give; yes and no? ...

Any type of expense is something you pay for. If you paid for it, then is it an operating expense? Just because you paid for something is not necessarily an operating expense. An operating expense is an item that will ensure that the property will continue to produce income. Examples of these exp...

Cap Rate The Cap Rate or Capitalization Rate is term that is heard quite often in regards to income properties.  In this article the income property I will be referring to will be an apartment building. What is a Cap Rate? What is a good Cap Rate? How do you calculate a Cap Rate? And basically, w...

The Gross Rental Multiplier (GRM), Multiplier for short, is easy to calculate, but what value does it hold?  In the world of investment properties you will see it stated in advertising, pro forma statements, broker’s listings and online property sites.  The standard definition of a Multiplier is ...